Sunday, March 7, 2010

Market outlook for 08/03/10

The benchmark Nifty ended flat with a positive bias after seeing consolidation throughout the session. The index was positive and held the 5100 mark in the first half of trade on good Asian cues. It, however, erased those early gains and remained volatile for rest of the day. Global cues were also quite supportive today.
Traders looked cautious in the last two days of this week after seeing rally of nearly 750 points on the Sensex since the Budget day. The Sensex closed just below the 17000 mark. Telecom, cement, select power, pharma and banking stocks along with DLF, Jindal Steel, Hero Honda & Infosys supported the markets. However, shares of FMCG, select technology and PSU power companies along with Reliance Industries, BHEL, Tata Motors, SAIL, HDFC, Unitech and Ranbaxy Labs witnessed selling pressure.
Nifty closed the day at 5088.70 up by 8.45 points. Nifty February Future closed at 5087, discount of 1.7 points.
  • FII bought in index futures, index options and cash but sold in stock futures (Net buy 1071.4 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: 5100 and 5200.
  • Most Active February Nifty Put Options: 5000 and 5100.
Over all view
Nifty daily chart has formed indecisive pattern from last two days but we would like to call it, a halt before any big up move, as market intermediate trend is up. Nifty daily chart has already given confirmation to “Bullish Head and Shoulder Pattern” and potential target for this pattern arrives at 5160-5225. Daily Momentum indicators are featuring in bullish zone. Weekly Chart is forming higher highs and higher lows pattern and RSI has given positive cross over to signal line. Over all technical scenario is positive and buying on dips works well in this type of market. Next Week Strong support placed in the range of 4993-4945 levels. Major Resistance placed at 5138-5160 levels.

NIFTY Technical
Current Spot: 5088.70
Pivot: 5091.80
3DEMA: 5070
7DEMA: 5012
20DEMA: 4946
RSI (7 days): 78.87
Supports: 5065 - 5041
Resistance: 5116 - 5142

Target Nifty
Buy Nifty above 5094 - 5112 - 5139 - 5163 SL - 5087
Sell Nifty below 5080 - 5066 - 5041 - 5014 SL - 5093

Option & Futures Call
Buy Nifty 5000PE at 57.2 for targets of 66.4, 77.6 SL of 54.8

Stock Ideas for the Day
Reliance Industries: Buy above 1019 for targets of 1024, 1032, 1041 SL of 1011
Reliance Industries: Sell below 1005 for targets of 1001, 995, 983 SL of 1016
Wockpharma: Buy above 151.5 for targets of 153.5, 156.1 SL of 149.1
Educomp: Buy above 714 for targets of 722, 742 SL of 701 (3-4 Days)
Sesa Goa: Sell below 444 for targets of 436, 425 SL of 448

Positional Call
Central Bank of India: Buy above 160 for targets of 174 SL of 154 (One Month)

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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