Market outlook for 10/03/10

The domestic market today closed with negative mark on the back of mixed global cues and volatility in the Asian markets. The benchmark indices belled the session on flat note tracking mixed cues from the global markets as the U.S market which closed flat on Monday, as the investors were cautious ahead of a meeting of Greek Prime Minister George Papandreou with U.S President Mr. Barack Obama and Treasury Secretary Timothy later in the global day. Traders also remain cautious, watching whether the Greek prime minister says anything new about his nation's debt troubles. Back home, the domestic market which was trading low from morning cut losses in the mid session following the statement from junior finance minister Namo Narain Meena, which states that the government will continue with economic reforms to strengthen the economy. The market gained momentum further after Mr. Duvvuri Subbarao, Governor of Reserve Bank of India (RBI) has said that the Inflation in India should moderate in the coming months and the RBI will ensure interest rate levels do not have a negative impact on the competitiveness of the economy. The market after reaching its day's high has slipped down as the fresh profit bookings emerged across the counter. Moreover, the market lost grounds further and closed the session with negative note. Nifty closed the day at 5101.5 down by 22.50 points. Nifty February Future closed at 5093, discount of 8.5 points.

• FII bought in index futures, index options, and cash but sold in stock futures (Net buy 1890.8 Crore)
• US market ended just Flat to Positive.
• 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
Yesterday Nifty has shown weakness throughout the day and finally daily chart has formed “Small Black Candle” which suggests uncertainty in market and yesterday was the fourth days where Nifty has formed uncertain candle. Immediate support placed at 5 days EMA which is at 5078 level. Daily Momentum indicators are showing some sign of weakness on chart. Again Strong support placed in the range of 4993-4945 levels. Major Resistance placed at 5138-5160 levels.

NIFTY Technical
Current Spot: 5101.50
Pivot: 5109.22
3DEMA: 5099
7DEMA: 5055
20DEMA: 4976
RSI (7 days): 74.14
Supports: 5086 - 5072
Resistance: 5124 - 5147

Target Nifty
Buy Nifty above 5108 - 5115 - 5135 - 5147 SL - 5102
Sell Nifty below 5089 - 5083 - 5075 - 5055 SL - 5107

Option & Futures Call
Buy Nifty 5100PE at 79.8 for targets of 85.7, 92.1 SL of 76.8

Stock Ideas for the Day
Reliance Industries: Buy above 1002 for targets of 1008, 1018, 1027 SL of 994
Reliance Industries: Sell below 985 for targets of 980, 975, 960 SL of 999
Eveready: Buy above 66.5 for targets of 68.5, 70.5 SL of 64.7
HCLTech: Buy above 361.4 for targets of 363.1, 365.75 SL of 359.65

Positional Call
Hanung: Buy above 159.5 for targets of 175 SL of 151.5 (One Week)
Anant Raj Ind.: Buy above 140 for targets of 148 SL of 137 (One Week)

The first rule is not to lose. The second rule is not to forget the first rule - WB

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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