Market outlook for 12/03/10

The domestic market today closed with marginal gain as buying interest emerged across the major indices at the final hours. The buying was intensified following the lower food inflation data for the week that stood at 17.81 per cent in the 12 months to Feb 27 as against an annual rise of 17.87 per cent in the previous week. The benchmark indices today opened with flat note for the 3rd straight session tracking uncertain global cues as the Asian markets were traded weak on account of rise in China's consumer prices in Feb'10. The Asian stocks tumbled today as the investors worried about the strong loan growth and quickening inflation in China would spur Beijing to tighten monetary policy sooner than expected, while the yen rebounded against major currencies. The domestic market which started on a flat note recovered after hitting fresh intraday lows in early trade but again tumbled down as the investors are eyeing on the inflation data. The market moved between positive and negative territory near the flat line in early trade. In the mid market, some buying was emerged across the counter and the market moved northwards. However, it falls further after gaining momentum as the investors' book profit across the key indices. 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 5133.40 up by 17.15 points. Nifty February Future closed at 5159.80, premium of 26.4 points.

• FII bought in index futures, index options, and cash but sold in stock futures (Net buy 1275.1 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
On 11th March, Accumulation/Distribution Line is pointing upward, according to ADX it is a strong trend (UpTrend) and the Price also moved upward with strength today, CCI is flat today while RSI & Stochastic are still flat but in over-bought zone. Markets may remain over-bought (or over-sold) for a longer period if other factors support. MFI & PVT are pointing upward today but near to overbought level. FIIs are still buyers while DIIs are still the sellers.
Well going against FIIs was bad for the Traders in most of the cases in past. Lets see what comes next? In my opinion, we are going to see 5200 perhaps.

NIFTY Technical
Current Spot: 5133.40
Pivot: 5129.35
3DEMA: 5121
7DEMA: 5086
20DEMA: 5003
RSI (7 days): 77.87
Supports: 5106 - 5079
Resistance: 5157 - 5180

Option Open Interest

Target Nifty
Buy Nifty above 5151 - 5168 - 5193 - 5227 SL - 5134
Sell Nifty below 5129 - 5115 - 5081 - 5057 SL - 5139

Option & Futures Call
Buy Nifty 5000PE at 30.5 for targets of 52, 59 SL of 28 (1-2 Days)

Stock Ideas for the Day
Reliance Industries: Buy above 1019 for targets of 1021, 1025, 1032 SL of 1012
Reliance Industries: Sell below 1009 for targets of 1006, 10001, 995 SL of 1017
Sobha Developers: Buy above 278 for targets of 284, 290 SL of 273
Globus Spirits Ltd.: Buy above 124 for targets of 127, 132 SL of 120
ABB: Sell below 862 for targets of 857, 851 SL of 871

Positional Call
IndiaBulls Real Estate: Buy above 172 for targets of 180 SL of 170 (One Week)
Hindustan Zinc: Buy above 1185 for targets of 1260 SL of 1145 (One Month)

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.

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