Market outlook for 17/02/10

The domestic benchmark indices today closed on a strong note after a sharp recovery from the initial falls on sustained buying across the sectoral indices. The domestic stock market broke its past days of losing trend and gained strength in the later part of the day to close with decent gains. The benchmark indices followed an upward trend and ended on a positive note. Many Asian markets were shut for the second day in a row for the Lunar New Year holidays. Since most of the Asia markets were closed today there was not much cues from the global market. Moreover, government's chief statistician Pronab Sen said the wholesale price inflation could cross 10 per cent by end-March, depending on how food prices behave in the next two weeks made the market move upward.
Nifty closed the day at 4,855.75 up by 53.8 points. Nifty February Future closed at 4,890 premium of 34.25 points.

• FII bought in index futures, cash and index options (Net bought 957.3 Crore)
• US markets was Positive.
• 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
Nifty after showing a late and well awaited 1.5% move today in dying hours of trade took everyone by surprise. Now as per the current technical trend we are on a crucial juncture of trend change in coming 2-3 trading sessions.
From High of 5309 to 4675 if we calculate the Fibo Retracement:
5 WEMA at 4892
38% retracement comes at 4916 and 50% retracement comes at 4992, closer to week high ema.
Any sell off from 38% mark should be limited to 4822 which is 5 Day EMA.

NIFTY Technical
Current Spot: 4855.75
Pivot: 4842.35
3DEMA: 4828
7DEMA: 4817
20DEMA: 4893
RSI (7 days): 51.45
Supports: 4805 - 4754
Resistance: 4893 - 4931

Target Nifty
Buy Nifty above 4869 - 4907 - 4952 - 5013 SL - 4846
Sell Nifty below 4842 - 4807 - 4746 - 4701 SL - 4851
Buy Bank Nifty above 8389 - 8428 - 8485 - 8533 SL - 8327
Sell Nifty below 8255 - 8217 - 8188 - 8169 SL – 8337

Stock Ideas for the Day
Reliance Industries: Buy above 1020 for targets of 1022, 1028, 1038 SL of 1012
Reliance Industries: Sell below 1009 for targets of 1003, 999, 995 SL of 1017
Bharti Airtel: Buy above 278 for targets of 284, 296 SL of 276 (1-2 Days)
NTPC: Buy above 203 for targets of 204, 206 SL of 202
3iInfotech: Buy above 77.9 for targets of 79.4, 81 SL of 76.9

Positional Call
Brandhouse Retail: Buy above 33 for targets of 36.5 SL of 31 (One Month)
HDIL: Buy above 314 for targets of 331 SL of 306 (One Week)

Wide diversification is only required when investors don't understand what they are doing - WB

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

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S&P Wealth Creators

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