Market outlook for 26/02/10

Yesterday, the market opened with positive mark despite of mixed Asian Stocks. The market slipped into the red in morning trade as most Asian stocks fell. It cut losses after hitting fresh intraday lows in early afternoon trade. The market remained volatile ahead of the expiry of near-term February 2010 derivatives contracts today, 25 February 2010. It moved below the dotted line till the afternoon trade. A bit of volatility was observed earlier in the day as the Finance Ministry's Economic Survey for 2009-2010 stated that India would bounce back to a high 9 per cent growth. Moreover, the cues from the negative foreign markets supported the market to fall further.
Nifty closed the day at 4,859.75 up by 1.15 points. Nifty February Future closed at 4,869.9, premium of 10.15 points.

• FII bought in stock futures and index options but sold in cash and index futures (Net buy 50.3 Crore)
• US market ended in RED.
• Global cues are flat to Negative.
• SGX nifty is Negative as of now.
• Most Active March Nifty Call Option: 5000 and 5100.
• Most Active February Nifty Put Options: 4800 and 4700.

Over all view
Nifty traded below the up trendline/channel from 4675 all day and closed below it. This is bearish and gives a move of 160 points which is the height of the channel as on daily charts. But a break of a trendline/channel, to give direction, should have the proper thrust which this break lacks. I would give more importance to the "range break".
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.
Today is the big BUDGET day, so expect lots of volatility and trade accordingly

NIFTY Technical
Current Spot: 4859.75
Pivot: 4858.50
3DEMA: 4861
7DEMA: 4858
20DEMA: 4881
RSI (7 days): 49.95
Supports: 4837 - 4814
Resistance: 4881 - 4903

Target Nifty
Buy Nifty above 4864 - 4877 - 4896 - 4920 SL - 4850
Sell Nifty below 4849 - 4839 - 4815 - 4796 SL - 4863

Stock Ideas for the Day
Reliance Industries: Buy above 974 for targets of 977, 993, 1002 SL of 967
Reliance Industries: Sell below 959 for targets of 956, 946, 930 SL of 971
Bhartiship: Buy above 259 for targets of 265, 272 SL of 252
Idea: Buy above 58.1 for targets of 58.5, 59.1 SL of 57.5

Positional Call
Bank of India: Buy above 327 for targets of 360 SL of 315 (One Month)
Unitech: Buy above 70.5 for targets of 78 SL of 68 (One Week)

The trend is your friend - Anonymous

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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