Wednesday, March 17, 2010

Market outlook for 18/03/10

The key benchmark indices closed the session on a positive note tracking firm global stocks. The market sentiment was firm as Asian stocks rose after the US Fed held benchmark rates near zero and maintained its pledge to keep them low for an extended period. On the other hand, the Bank of Japan kept its key interest rate unchanged at 0.1 per cent today as had been widely expected. Moreover it would extend emergency steps taken in December by boosting its short-term loan facility to 20 trillion yen. Back home the key benchmark indices continued their uptrend to hit fresh intraday highs in mid-morning trade, also their highest level in nearly two months. The market closed positive for the second day in a row with Metal stocks rose on gains in metal prices on London Metal Exchange on Tuesday, 16 March 2010.Apart from this heavy buying was witnessed in PSU, HC and CG sectors while selling pressure was seen in the Auto, Realty and FMCG sector.
Nifty closed the day at 5231.90 up by 33.80 points. Nifty February Future closed at 5244, premium of 12.1 points.
  • FII bought in index futures, index options and cash but sold in stock futures (Net buy 2347.2 Crore)
  • US market ended Positive.
  • Global cues are flat to Positive.
  • SGX nifty is Positive as of now.
  • Most Active March Nifty Call Option: 5200 and 5300.
  • Most Active February Nifty Put Options: 5100 and 5200.
Over all view
Yesterday nifty traded in good 83 points range and ended with decent gain. On daily candle nifty has formed relatively higher upper shadow compare to lower shadow, suggests some supply at higher level. Important point to note here is that nifty entered first time in highly overbought zone after 1 October 2009. Important resistance placed at 5310 level, which will work as good supply area and little correction from there on will treat as healthy correction. Strong Near term support shifted up to 5100 level.

NIFTY Technical
Current Spot: 5231.90
Pivot: 5238.10
3DEMA: 5198
7DEMA: 5155
20DEMA: 5061
RSI (7 days): 85.62
Supports: 5216 - 5200
Resistance: 5254 - 5277

Option Open Interest

Target Nifty
Buy Nifty above 5248 - 5264 - 5292 - 5314 SL - 5242
Sell Nifty below 5232 - 5220 - 5197 - 5170 SL - 5247

Option & Futures Call
Buy Nifty 5200PE at 28.9 for targets of 35.3, 41.8, 48.5, SL of 26 (Hold for 2-3 days for maximum gains)

Swing Trade

India Info (123.20)
Stock is making higher highs and higher lows from last two trading days and yesterday stock has given strong volume breakout. 3 days EMA has given positive cross over to 8 days EMA. Important swing high placed at 125 level , crossing this level stock will invite bull to take charge. Daily momentum indicators are featuring in bullish zone. Looking at all above parameters trader with moderate risk appetite can consider Buy above Rs.125 with tight Stop loss of Rs.121.50 for a Target of Rs.132.

Stock Ideas for the Day
Reliance Industries: Buy above 1078 for targets of 1081, 1087, 1094 SL of 1070
Reliance Industries: Sell below 1064 for targets of 1060, 1055, 1049 SL of 1075
JSW Energy: Buy above 112 for targets of 113, 115 SL of 110.5
Whirlpool India: Buy above 175 for targets of 179, 184 SL of 172

Positional Call
Bharti Airtel: Buy above 295 for targets of 310 SL of 290 (One Week)
Hitachi Home: Buy above 222 for targets of 234 SL of 218 (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

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