Market outlook for 11/03/10

The domestic market today closed with positive note on the back of positive Asian markets and recovery in the European markets. The benchmark indices belled the session with flat note tracking mixed cues from the Asian market as the U.S market closed nearly flat despite some minor fluctuations in the Dollar index. Back home, the domestic market which started on a flat note edged higher in early trade. It surged to hit the day's high in mid-morning trade has slipped down as the fresh profit bookings emerged across the counter. However, the market slipped into the red in afternoon trade. It moved between positive and negative zone near the flat line at the later hours. Moreover, the market was able to gain momentum as buying interest emerged at this level and closed the session with positive note.
Nifty closed the day at 5116.25 up by 22.50 points. Nifty February Future closed at 5093, premium of 7.05 points.

• FII bought in index futures, index options, and cash but sold in stock futures (Net buy 519.5 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: 5100 and 5200.
• Most Active February Nifty Put Options: 5000 and 5100.

Over all view
Yesterday in intraday Nifty has formed “Deliberation Pattern” which is a bearish candlestick pattern and we saw some selling after that. Daily chart has formed “Long Legged Doji” which suggests uncertainty at higher level and volume was quite low yesterday. Daily momentum indicators are also suggesting uncertainty. On positive side 20 days EMA has given positive cross over to 50 days EMA and important point to note here is that market is note falling and it is just consolidating.

NIFTY Technical
Current Spot: 5116.25
Pivot: 5115.20
3DEMA: 5108
7DEMA: 5070
20DEMA: 4990
RSI (7 days): 75.87
Supports: 5093 - 5070
Resistance: 5138 - 5161

Option Open Interest

Target Nifty
Buy Nifty above 5122 - 5137 - 5159 - 5181 SL - 5115
Sell Nifty below 5110 - 5099 - 5076 - 5055 SL - 5120

Option & Futures Call
Buy Nifty 5000PE at 36.3 for targets of 52, 59 SL of 30 (1-2 Days)

Stock Ideas for the Day
Reliance Industries: Buy above 1011 for targets of 1018, 1033, 1049 SL of 1003
Reliance Industries: Sell below 1001 for targets of 995, 979, 965 SL of 995
Orbit Corporation Ltd.: Buy above 299 for targets of 307, 317 SL of 288
JK Tyre: Buy above 195 for targets of 199, 204 SL of 190
Coromandel Fertilizers: Buy above 310 for targets of 317, 325 SL of 303
Acc: Sell below 1009 for targets of 1004, 997 SL of 1016

Positional Call
SesaGoa: Buy above 440 for targets of 461 SL of 430 (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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Disclaimer
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