Tuesday, March 16, 2010

Market outlook for 17/03/10

The key benchmark indices closed the Bull Run session with strong gains tracking the firm advance tax numbers from the corporate as well as firm European market. The European market opened on a positive note as investors awaited a US interest rate decision. The domestic market after a gap up opening tumbled below the dotted line following the Asian market which opened in a positive note reversed gains later in the day and ended on mix as investors reminded cautious ahead of the policy meetings by the U.S Federal Reserve and the Bank of Japan. However, the market made a smart bounce back soon to continue its northward journey till the final close of the session. In U.S the markets closed flat, as participants are eagerly waiting for the FOMC's policy statement. Back home, the investors were motivated by strong set of advance tax figures from India Inc for Q4FY10 indicating healthy fourth quarter results made the market move in the northward direction.
Nifty closed the day at 5198.10 up by 69.20 points. Nifty February Future closed at 5207.55, premium of 9.45 points.
  • FII bought in stock futures, index options and cash but sold in index futures (Net buy 1086.5 Crore)
  • US market ended 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 buying was seen in the later part of the day and finally nifty has broken eight days consolidation zone and formed “Long White Candle” a bullish candlestick pattern. Daily momentum indicators are on the verge of overbought zone. Now strong support placed at 5070 level as long as Nifty is trading above this level buy on dips strategy works well.

NIFTY Technical
Current Spot: 5198.10
Pivot: 5177.65
3DEMA: 5163
7DEMA: 5129
20DEMA: 5043
RSI (7 days): 82.91
Supports: 5146 - 5094
Resistance: 5230 - 5261

Option Open Interest

Target Nifty
Buy Nifty above 5209 - 5237 - 5272 - 5327 SL - 5181
Sell Nifty below 5176 - 5152 - 5096 - 5061 SL - 5186

Swing Trade

Polaris (166.55)
Stock has formed “Three Outside Up” bullish candlestick pattern with strong volume breakout on daily chart and broken previous swing high. Daily RSI is featuring in bullish zone, +DI line has given positive cut to –DI and ADX line, suggest up move is likely to continue in stock. Looking at all above technical parameters trader with moderate risk appetite can consider Buy above Rs.167 with tight Stop Loss of Rs.163 for a Target of Rs.174.

Stock Ideas for the Day
Reliance Industries: Buy above 1071 for targets of 1081, 1096, 1124 SL of 1054
Reliance Industries: Sell below 1051 for targets of 1043, 1016, 1001 SL of 1059
Aarti Ind: Buy above 47 for targets of 48, 49 SL of 46.1
Unichem: Buy above 374 for targets of 379, 385 SL of 368

Positional Call
Pantaloon: Buy above 384 for targets of 400 SL of 387 (One Week)
20 Microns: Buy above 42.5 for targets of 46 SL of 41 (One Month)

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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