Thursday, February 18, 2010

Market outlook for 18/02/10

Today the key benchmark indices ended on a high note taking cues from positive global markets. The market continued its northward journey and extended early gains to hit fresh intraday highs in morning trade as global market rose. Asian stocks rose on Wednesday, 17 February 2010, for the sixth time in seven days on speculation that the global economy is recovering as commodity prices gained. On the other hand, European equities advanced for a third straight session on Wednesday as forecast-beating results from BNP Paribas helped banking stocks and stronger commodity prices supported mining and energy shares. Firm global stocks underpinned investor sentiment. Back home, Finance Minister Pranab Mukherjee said on Wednesday that the economy may grow at more than 8 per cent in the fiscal year 2010/11, after growing at around 7.5 per cent in the current fiscal year ending March 2010. He further said that the government's measures to control rising inflation would take some time to make an impact.
Nifty closed the day at 4,914 up by 58.25 points. Nifty February Future closed at 4,902.1 discount of 11.9 points.
  • FII bought in index futures, stock futures and cash but sold in index options (Net bought 1297.6 Crore)
  • US market was flat to Positive.
  • Global cues are flat to Positive.
  • SGX nifty is Positive as of now.
  • Most Active February Nifty Call Option: 4900 and 5000.
  • Most Active February Nifty Put Options: 4900 and 4800.
Over all view
It touched 4829 (resistance given 4825) before reacting today, and nifty and bank nifty both are nearing bigger resistances. And as budget is in the corner we can expect a bigger move on either side (technically down from resistances).
Supports: The shorter term impulse and longer term corrective is unchanged till 4960-4985 is crossed. Will be wise to book longs and going short with strict s/l. Day's supports are lying at 4870-4840-4805. Below that resumption of the downtrend is most likely.
Resistances: Same lies at 4925-4960-4985. These are all positional target of nifty which is partially achieved. Closing of longs would be a better idea. But in case goes above 4985 and sustains, 5050-5080/85 is possible. Be light with your position and experienced trader can look at hedging opportunity because of special event like Budget.

NIFTY Technical
Current Spot: 4914.00
Pivot: 4900.43
3DEMA: 4871
7DEMA: 4841
20DEMA: 4895
RSI (7 days): 59.45
Supports: 4871 - 4828
Resistance: 4943 - 4973

Target Nifty
Buy Nifty above 4910 - 4928 - 4952 - 4978 SL - 4902
Sell Nifty below 4897 - 4883 - 4857 - 4833 SL - 4907

Option & Futures Call
Buy Nifty 4900PE above 65.5 for targets of 75.8, 89.6 SL - 62

Stock Ideas for the Day
Reliance Industries: Buy above 1032 for targets of 1038, 1045, 1055 SL of 1028
Reliance Industries: Sell below 1028 for targets of 1023, 1013, 1006 SL of 1031
Visa Steel Ltd.: Buy above 283 for targets of 289, 296 SL of 278 (1-2 Days)
JK Cement: Buy above 194 for targets of 199, 206 SL of 187
Hindalco: Buy above 153 for targets of 155.5, 158 SL of 151.2

Positional Call
Amtek India: Buy above 73.5 for targets of 84 SL of 65 (One Month)
Sasken Comm: Buy above 182 for targets of 196 SL of 175 (One Week)
SesaGoa: Buy above 388 for targets of 402 SL of 380 (One Week)

Diversify your investments - John Templeton

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

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