Market outlook for 23/02/10

Today the domestic market closed the session with marginal gains after a strong rally for most part of the day. The benchmark indices gave up its gains in the final hours of the session on account of selective profit booking that emerged across the Realty and Consumer Durables indices. After a firm start, triggered by higher Asian stocks, the market managed to trade on a firm note for most part of the day. The statement by the President Pratibha Patil regarding an economic growth, that India will rise by about 7.5 per cent in the current financial year also boosted the investors' sentiments at the initial stage. However, the market failed to sustain the momentum that was gained initially and fall towards the dotted line, as the investors were also cautious regarding the three important fiscal bills- Pension Fund Regulatory and Development Authority (PFRDA) Bill, Insurance Bill and Banking Regulation (Amendment) Bill, which had been stalled by the Left parties. Moreover, the cues from the negative European markets and with the focus being on outcome of the Railway Budget and the Union Budget 2010-11 also supported the market to fall further.
Nifty closed the day at 4,856.40 up by 11.50 points. Nifty February Future closed at 4,850.80, discount of 5.6 points.

• FII bought in index futures, stock futures, index options but sold in cash (Net buy 810 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
Nifty daily chart has formed “Gravestone Doji” bearish candlestick pattern, although this pattern occurred in consolidation zone and where macro factors are going to influence more rather than technical alone. As said earlier 4675 will work as strong support for the market and as long as this level sustains there should not be panic in market. Next important resistance to watch out is 4918 level, two closes above this level, invite bull to take charge. Trader should remain cautious and avoid spike on either side.
Supports: 4835 is immediate. Below that 4800-4785 can possible before any further breakdown. Below that 4720/10 is possible before any handsome pullback.
Resistances: As said above, 4918 is the key now. Above 4920, it can again move towards 4960/75 zone to decide the further moves.
Trade LESS, Trade SAFE.

NIFTY Technical
Current Spot: 4856.40
Pivot: 4871.40
3DEMA: 4859
7DEMA: 4852
20DEMA: 4887
RSI (7 days): 47.57
Supports: 4831 - 4805
Resistance: 4897 - 4938

Target Nifty
Buy Nifty above 4878 - 4897 - 4940 - 4965 SL - 4870
Sell Nifty below 4849 - 4834 - 4809 - 4766 SL - 4877

Option & Futures Call
Buy Nifty 4900CE above 34.1 for targets of 45.8, 65.9 SL - 31

Stock Ideas for the Day
Reliance Industries: Buy above 988 for targets of 993, 1001, 1010 SL of 980
Reliance Industries: Sell below 973 for targets of 968, 961, 955 SL of 985
Ruchi Soya: Buy above 96 for targets of 96.6, 98.8 SL of 94.9
Godrej Industries: Buy above 151 for targets of 154, 158 SL of 148
Kwality Dairy: Buy above 197 for targets of 202, 207 SL of 193

Positional Call
Biocon: Buy above 267 for targets of 308 SL of 258 (One Month)
CESC: Buy above 379 for targets of 403 SL of 365 (One Week)

You don’t own stocks. Stocks own you - TONY BALIS

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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Disclaimer
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