Thursday, February 25, 2010

Market outlook for 25/02/10

Today the domestic market closed in negative terrain due to unfavoring cues from the domestic and foreign markets. The benchmark indices opened the market with stiff fall but managed to gain momentum and moved above the red line as buying interest emerged at lower level. Throughout the day it moved between positive and negative terrain as the investors remained cautious from morning on the back of the Railway budget announced today at afternoon session. The benchmark indices recovered from loss and jumped ahead further on account of selective buying that emerged across the Realty and IT indices. The statement by the Finance Minister Mr. Pranab Mukherjee that the fiscal stimulus has helped the economy to resist the impact of the slowdown also boosted the investors' sentiments to book fresh positions at the final hours. However, market was not able to sustain its momentum further and fell again before the closing hours.
Nifty closed the day at 4,858.60 down by 11.45 points. Nifty February Future closed at 4,866.1, premium of 7.50 points.
  • FII bought in stock futures and cash but sold in index futures and index options (Net sold 261.6 Crore)
  • US market ended in Green.
  • 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: 4900 and 4800.
Over all view
Today being expiry a break above 4885 will lead to test of 4930-4951 and a break below 4833 will lead to a test of 4805-4785. Follow up buying or selling beyond these levels will give a 100 point move whichever way the market breaks out.
Supports: 4840 is immediate. Below that 4808/00-4785. Positional supports lies at 4750-4715/10.
Resistances: 4890 stays as it is. Above that 4910/25 possible. Further breakout will bring 4960-4985, which can be a reversal points for the down move.
Strategy of holding hedged longs with a stop of 4772 continues.

NIFTY Technical
Current Spot: 4858.60
Pivot: 4868.85
3DEMA: 4862
7DEMA: 4857
20DEMA: 4883
RSI (7 days): 49.67
Supports: 4837 - 4816
Resistance: 4880 - 4902

Target Nifty
Buy Nifty above 4866 - 4881 - 4902 - 4923 SL - 4860
Sell Nifty below 4855 - 4844 - 4823 - 4802 SL - 4866

Option & Futures Call
Buy Bharti Airtel 280CE (March Expiry) at 12 for targets of 15, 18 SL - 9

Stock Ideas for the Day
Reliance Industries: Buy above 980 for targets of 989, 999, 1013 SL of 975
Reliance Industries: Sell below 974 for targets of 966, 953, 943 SL of 979
Rec: Buy above 227 for targets of 231, 237 SL of 224
Balrampur Chini: Buy above 106.5 for targets of 108, 112 SL of 103

Positional Call
Reliance Industries: Buy above 979 for targets of 1040 SL of 964 (One Week)
IFCI: Buy above 48.6 for targets of 54 SL of 46.4 (One Week)

Investors have very short memories - Roman Abramovich

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

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