Thursday, March 4, 2010

Market outlook for 05/03/10

The domestic market took a breather today after continuing its northward journey for the past three straight sessions as the market closed with negative note as the selling pressure emerged throughout the counter. The benchmark indices belled the session with a flat note tracking the weak global cues but soon lost momentum and tumbled as the Finance Ministry announced that the proposed Goods and Services Tax rate is likely to be higher than 12 per cent, which was suggested by the task force set up by the 13 Finance Commission. This weakened the investors’ sentiments, which led to the selling pressure across the sectoral indices. Till the afternoon trade the major benchmark indices continued to move southward as the government was likely to announce the data for food price index, the primary articles index and the fuel price index in afternoon. However, the key benchmark indices started to drive towards northwards trying to come-out of its current loss on the back of some buying at the lower levels across the selective indices. Meanwhile, the Food Price inflation data witnessed a rise of 17.87 per cent in the 12 months to February 20, which was higher than an annual rise of 17.58 per cent in the previous week.
Nifty closed the day at 5080.25 down by 7.85 points. Nifty February Future closed at 5079.55, discount of 0.7 points.
  • FII bought in index options and cash but sold in index futures and stock futures (Net buy 1011.5 Crore)
  • US market ended in Green.
  • 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 5000.
Over all view
As described in yesterday’s news letter we saw profit booking at higher level after appearance of “Three White Soldier”. On moving average front 20 days EMA is reducing gap between 50 days EMA which is a good sign for bulls. Daily Momentum indicators are featuring in bullish zone but Stochastic is hovering over bought zone which may invites selling pressure at higher level. Over all technical scenarios is bullish, so buying on dips strategy works well.

NIFTY Technical
Current Spot: 5080.25
Pivot: 5075.40
3DEMA: 5051
7DEMA: 4986
20DEMA: 4931
RSI (7 days): 78.15
Supports: 5054 - 5027
Resistance: 5102 - 5123

Target Nifty
Buy Nifty above 5085 - 5095 - 5111 - 5135 SL - 5071
Sell Nifty below 5066 - 5060 - 5037 - 5021 SL - 5076

Option & Futures Call
Buy Nifty 5000CE at 80.6 for targets of 88.7, 97.3 SL of 75.3

Stock Ideas for the Day
Reliance Industries: Buy above 1023 for targets of 1031, 1045, 1055 SL of 1016
Reliance Industries: Sell below 1016 for targets of 1009, 999, 985 SL of 1022
IDFC: Buy above 162 for targets of 165, 168 SL of 158
Yes Bank: Buy above 254 for targets of 258, 263 SL of 249
Astec: Buy above 53 for targets of 54.2, 56.3 SL of 52.1
JP Associates: Sell below 144 for targets of 141, 137 SL of 148

Positional Call
Andhra Bank: Buy above 102 for targets of 107 SL of 100 (One Week)
Sterlite Ind: Buy above 814 for targets of 856 SL of 800 (One Week)

Most people are beaten up by the market instead of beating the market - MARK T. HEBNER

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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