Tuesday, March 2, 2010

Market outlook for 02/03/10

On 26th the domestic market closed with positive note on the back of major announcement made by the Finance Minister Pranab Mukherjee during the Budget session. The benchmark indices opened the market with a firm note taking support from the positive Asian Markets and positive market sentiments eyed on the Union Budget. However, the market continued to remain at a same level until the Budget had been announced by Mr. Pranab Mukherjee. Key benchmark indices jumped suddenly towards northwards in afternoon trade as the investors were started to book fresh positions on account of the positive budget announcements regarding the realty and auto sectors. The market reached its day high at the lunch session after the government announced - new income tax slabs, reduction in financial year deficit, proposed GST from next financial year, and many more. The minister also said threshold limit for TDS applicability will be rationalized. Also the fiscal deficit is pegged at 5.5 per cent of GDP for 2010-2011, lower than an estimated 6.5 per cent for the current fiscal year. However, after a day's high, soon the market started to drift downwards as the investors were eager to book profit from the major gaining stocks.
Nifty closed the day at 4,922.30 up by 62.55 points. Nifty February Future closed at 4,935.95, premium of 13.65 points.
  • FII bought in index futures, index options and cash but sold in stock futures (Net buy 2274 Crore)
  • US market ended in Positive.
  • Global cues are flat to Positive.
  • SGX nifty is Positive as of now.
  • Most Active March Nifty Call Option: 5000 and 5100.
  • Most Active February Nifty Put Options: 4900 and 4800.
Over all view
Nifty Daily Charts are attached as above as it can be easily interpreted that we are seeing a trendline support at 4850 levels. If that support is held and we close above 4950 for 2 days we are heading towards the 5050 and 5100 Levels.
For Tuesday trading session Long positions may be taken in support zone around 4880 with the SL of 4850, for likely target of 4950/4990.

NIFTY Technical
Current Spot: 4922.30
Pivot: 4924.25
3DEMA: 4891
7DEMA: 4874
20DEMA: 4884
RSI (7 days): 63.16
Supports: 4857 - 4791
Resistance: 4990 - 5058

Target Nifty
Buy Nifty above 4936 - 4998 - 5067 - 5135 SL - 4923
Sell Nifty below 4923 - 4865 - 4798 - 4728 SL - 4936

Option & Futures Call
Buy Nifty 5000CE at 95.8 for targets of 111, 136 SL 88

Stock Ideas for the Day
Reliance Industries: Buy above 985 for targets of 991, 1006, 1020 SL of 978
Reliance Industries: Sell below 974 for targets of 968, 954, 939 SL of 983
RCF: Buy above 92.8 for targets of 94, 96.5 SL of 90
PetroNet: Buy above 74.3 for targets of 75.1, 76.5 SL of 72.9
NFL: Buy above 119.7 for targets of 122.5, 125 SL of 115

Positional Call
MSK Projects(India): Buy above 113.5 for targets of 122 SL of 108 (One Month)
GMR Infra: Buy above 54.8 for targets of 59 SL of 53 (One Week)

Theories are private property, but truth is common stock - Charles Caleb Colton

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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