Market outlook for 16/02/10

The domestic market closed in the negative terrain due to the lack of cues and with government announcing a higher inflation of 8.56 per cent for January as against 7.31 per cent last month, which led to the worries that the RBI may take more monetary action to check inflation. During the day, the market was pessimistic as the investors were cautious to book profit. The cues from the global markets and a sharp rise in the domestic inflation figure also supported the fall. However, European markets started with gains and trading in positive territory. Nifty closed the day at 4,801.95 down by 24.9 points. Nifty February Future closed at 4,795 discount of 6.95 points.

• FII bought in index futures, cash and index options (Net bought 487.4 Crore)
• US markets was closed.
• Global cues are flat to Positive.
• SGX nifty is Positive as of now.
• Most Active February Nifty Call Option: 4800 and 4900.
• Most Active February Nifty Put Options: 4800 and 4700.

Over all view
As anticipated Nifty corrected yesterday but it was a day of mild correction in a sideways movement on low volumes. The upward moving channel shown on half hourly charts was broken but no momentum on the downside was seen. The day's candle made a higher top and higher bottom. Positive divergences on daily charts are intact. The breakout from the down trendline from 5310 is also intact.
Nifty has resisted at the 23.6% retracement level at 4825 since last week making it an important resistance to cross for any further upside. Yesterday Nifty hit the resistance of 61.8% fibo level of fall from 4951 at 4845. Thus only a close past 4825-4845 will keep the upmove going, else the correction may resume.
Supports: 4775 and 4750/52 are immediate, below that some more weakness can show 4705/08 before final breakdown. Below that 4640 and positional target of 4540-4440.
Resistances: 4805 and above that 4835 possible. Above that 4855-75 can come. Further violation of 4880 zone can bring 4920-4940/55 zone and decide next movements.

NIFTY Technical
Current Spot: 4801.95
Pivot: 4810.45
3DEMA: 4800
7DEMA: 4804
20DEMA: 4897
RSI (7 days): 42.46
Supports: 4775 - 4749
Resistance: 4837 - 4872

Target Nifty
Buy Nifty above 4808 - 4829 - 4865 - 4892 SL - 4802
Sell Nifty below 4789 - 4771 - 4744 - 4708 SL - 4807

Option & Futures Call
Buy February 4800 CE at 87.8 for targets of 101, 123, 136 SL of 82

Stock Ideas for the Day
Reliance Industries: Buy above 1013 for targets of 1018, 1029, 1035 SL of 1011
Reliance Industries: Sell below 1007 for targets of 1003, 997, 987 SL of 1013
Jindal Steel & Power: Buy above 637 for targets of 642, 652 SL of 627 (1-2 Days)
Hcl Tech: Buy above 363 for targets of 366, 371 SL of 359
3iInfotech: Buy above 78.2 for targets of 79.4, 81 SL of 77.7

Positional Call
Harrison Malayalam: Buy above 116.5 for targets of 124 SL of 109 (One Week)
Andrew Yule: Buy above 57.5 for targets of 61 SL of 56 (3-4 Days)
NMDC: Buy above 487 for targets of 511 SL of 473 (3-4 Days)

There is only one side of the market and it is not the bull side or the bear side, but the right side - Jesse Livermore

Use strict STOP LOSS in each and every trade in this kind of volatile market and Trade at your own risk.

Thanks and Regards

S&P Wealth Creators

Call 09831497250 or mail us @ S&P Wealth Creators with your Name and Mobile No. for subscription offer of intraday calls during Market hours.

Disclaimer
The calls given here are My Personal views, trading or investing in stocks is a high risk activity. Any action you choose to take in the markets is totally your own responsibility. S&P Wealth Creators will not be liable for any, direct or indirect, consequential or incidental damages or loss arising out of the use of this information.
Investors should be cautious about any and all stock recommendations and should consider the source of any advice on stock selection. Various factors, including personal or corporate ownership, may influence or factor into an expert’s stock analysis or opinion.