Tuesday, March 16, 2010

Market outlook for 16/03/10

The key benchmark indices after making a smart bounce back from the day's low ended on the negative note on account of weak global market. The key benchmark indices remained weak and oscillated in a narrow range in morning trade tracking subdued Asian stocks and lower US index futures. Weakness in European equities were felt on account of the tightening liquidity policy by Beijing in the near future to fight inflation, with the Chinese central bank seen raising banks reserve requirement ratios as early as this week. Back home the positive advance tax result of the Indian companies lifted the market sentiments and made the market to recover from the fall and trade in the positive zone in the afternoon. However the rising price index data for the month of February hampered the investors' sentiments and pulled back the market to negative zone.
Nifty closed the day at 5128.90 down by 8.10 points. Nifty February Future closed at 5135.65, premium of 6.75 points.
  • FII bought in stock futures and cash but sold in index futures and index option (Net buy 280 Crore)
  • US market ended Flat.
  • Global cues are flat to Positive.
  • SGX nifty is Negative 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 “Long Legged Doji” an uncertain candlestick pattern but it is at higher level and here significance is more for weakness. From last 8 trading days Nifty is trading in the range bound movement with uncertain candles. As said in last note 5050 and 5310 will work as a strong short term support and resistance level respectively in near term. Scenario slightly favors bear for today. Over all remain cautious and capital preservation is more advisable.

NIFTY Technical
Current Spot: 5128.90
Pivot: 5127.05
3DEMA: 5129
7DEMA: 5106
20DEMA: 5027
RSI (7 days): 74.42
Supports: 5103 - 5077
Resistance: 5153 - 5177

Option Open Interest

Target Nifty
Buy Nifty above 5136 - 5141 - 5153 - 5172 SL - 5122
Sell Nifty below 5117 - 5111 - 5096 - 5085 SL - 5127

Option & Futures Call
Buy Nifty 5100PE at 49.5 for targets of 55, 70 SL of 45 (1-2 Days)

Swing Trade

CESC (411.75)
After making low of 368 in late February Stock is in uptrend and yesterday stock has broken 50 % retracement level of previous corrective wave with “Long White candle” and strong volume breakout on daily chart, combination suggest momentum is likely to continue. Daily Momentum indicators are featuring in bullish zone. Weekly RSI is also featuring in bullish zone and making higher highs and higher lows pattern. Looking at all above technical parameters trader with moderate risk appetite can consider Buy in range of 409-412 with tight stop loss of Rs.403 for a Target of Rs.428.

Stock Ideas for the Day
Reliance Industries: Buy above 1031 for targets of 1033, 1041, 1052 SL of 1022
Reliance Industries: Sell below 1019 for targets of 1015, 1008, 1001 SL of 1027
Havells India: Buy above 536 for targets of 544, 556 SL of 525
Rec: Buy above 236 for targets of 240, 248 SL of 230

Positional Call
Eveready Ind: Buy above 61.5 for targets of 64.5 SL of 60 (One Week)
Wipro: Buy above 725 for targets of 760 SL of 710 (One Week)

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

Call 09831497250 or mail us @ S&P Wealth Creators with your Name and Mobile No. for subscription offer of intraday calls during Market hours.

The calls given here are My Personal views, trading or investing in stocks is a high risk activity. Any action you choose to take in the markets is totally your own responsibility. S&P Wealth Creators will not be liable for any, direct or indirect, consequential or incidental damages or loss arising out of the use of this information.
Investors should be cautious about any and all stock recommendations and should consider the source of any advice on stock selection. Various factors, including personal or corporate ownership, may influence or factor into an expert’s stock analysis or opinion.


Post a Comment

Please leave your comments here...