Tuesday, March 9, 2010

Market outlook for 09/03/10

The domestic market today closed with strong note supported by the firm global markets. The benchmark indices belled the session with strong note taking cues from positive Asian markets. The market was further supported on the grounds as positive cues were coming regarding better-than-estimated U.S jobs data and a pledge by French President Nicolas Sarkozy to support Greece boosted confidence in the global recovery. Also, on Friday the U.S markets closed higher on the back of a smaller-than-expected decline in February Nonfarm Payrolls report February which came in with a smaller job loss of 36,000 against expected decline of 68,000. The market after its firm start kept trading on a same line till afternoon trade but moved down a bit as the fresh profit bookings emerged across the counter. However, the market gained from its day's low in the post-lunch session and closed the session with positive note.
Nifty closed the day at 5124 up by 35.30 points. Nifty February Future closed at 5118.4, discount of 5.6 points.
  • FII bought in index futures, index options, cash and stock futures (Net buy 2079.7 Crore)
  • US market ended just Flat to Red.
  • 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
As said yesterday Nifty is showing some sign of halt at higher level and waiting for fresh cues for further movement. From last three days nifty is trading in narrow range which suggests uncertainty at higher level. Important point to note here is that 20 Days EMA is on the verge of positive cross over to 50 days EMA. Near term scenario appears to be bullish and still buying on dips strategy works well. Strong support placed in the range of 4993-4945 levels. Major Resistance placed at 5138-5160 levels.

NIFTY Technical
Current Spot: 5124
Pivot: 5127.20
3DEMA: 5097
7DEMA: 5040
20DEMA: 4963
RSI (7 days): 81.81
Supports: 5107 - 5091
Resistance: 5144 - 5164

Target Nifty
Buy Nifty above 5126 - 5137 - 5160 - 5177 SL - 5120
Sell Nifty below 5110 - 5103 - 5085 - 5063 SL - 5125

Option & Futures Call
Buy Nifty 5100PE at 73.5 for targets of 80.4, 87.6 SL of 70.8

Stock Ideas for the Day
Reliance Industries: Buy above 1016 for targets of 1022, 1034, 1043 SL of 1009
Reliance Industries: Sell below 999 for targets of 994, 989, 973 SL of 1014
Lanco Infra: Buy above 52.4 for targets of 53.2, 54.5 SL of 51.3
Omaxe Auto: Buy above 55.90 for targets of 57.80, 58.50 SL of 55
Sail: Sell below 236 for targets of 235, 232 SL of 238

Positional Call
Sabero Organics: Buy above 79.5 for targets of 83.5 SL of 154 (One Week)
Bombay Dyeing: Buy above 579 for targets of 609 SL of 565 (One Week)

Our favourite holding period is forever - Warren Buffett

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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