Thursday, March 18, 2010

Market outlook for 19/03/10

The benchmark Nifty closed the session on a flat note with positive bias after seeing consolidation since beginning of trade. Overall, it was a lackluster session today after a two-day rally. The index strengthened in the last few minutes of trade to close just near 5250, especially on the back of heavyweights like Infosys, SAIL, ICICI Bank, Reliance Industries and SBI along with telecom stocks.
However, selling in infrastructure stocks along with ONGC, TCS, Wipro, M&M, ITC, Sterlite Industries, BPCL, Maruti and HDFC Bank limited the losses to some extent.
Sanjay Dutt of Quantum Securities sees some sector and stock rotation in markets now. He says that the markets are at higher end of valuations at current levels.
Nifty closed the day at 5245.90 up by 14 points. Nifty February Future closed at 5255.60, premium of 9.7 points.
  • FII bought in index options, stock futures and cash but sold in index futures (Net buy 1590.8 Crore)
  • US market ended Positive.
  • Global cues are flat to Positive.
  • SGX nifty is Positive as of now.
  • Most Active March Nifty Call Option: 5300 and 5200.
  • Most Active March Nifty Put Options: 5200 and 5300.
Over all view
Yesterday Nifty has made “Small White Candle” and shown some sign of tiredness at higher level. detailed study of intraday chart pattern also suggests uncertainty over bulls and bears. As said yesterday market is hovering in over bought and technically we may see some supply at higher level. Near term strong support placed at 5110 and Resistance placed at 5310 levels.

NIFTY Technical
Current Spot: 5245.90
Pivot: 5238.65
3DEMA: 5222
7DEMA: 5178
20DEMA: 5078
RSI (7 days): 86.65
Supports: 5222 - 5198
Resistance: 5263 - 5280

Option Open Interest

Target Nifty
Buy Nifty above 5258 - 5269 - 5286 - 5311 SL - 5244
Sell Nifty below 5239 - 5232 - 5207 - 5189 SL - 5249

Option & Futures Call
Buy Nifty 5200PE at 27.2 for targets of 32.8, 41, 46.8, SL of 23

Swing Trade

Tata Communication (295.10)
Stock was in continuous downtrend from mid January and formed bottom at 270 zones in mid march, from last four days stock was in accumulation zone and yesterday stock has formed “Long White Candle” bullish candlestick pattern with strong volume breakout on daily chart. 3 days EMA has given positive cut to 8 days EMA, more over stock has given breakout to 20 days EMA after long period. Looking at all above parameters traders with moderate risk appetite can consider Buy above 297 with tight stop loss of 290 for a Target of 312.

Stock Ideas for the Day
Reliance Industries: Buy above 1080 for targets of 1082, 1089, 1099 SL of 1072
Reliance Industries: Sell below 1069 for targets of 1066, 1059, 1052 SL of 1077
Ind Hotel: Buy above 104.5 for targets of 106, 108 SL of 102
Mindtree: Buy above 565 for targets of 572, 589 SL of 560
TCS: Sell below 821 for targets of 812, 802 SL of 830

Positional Call
Pennar Ind: Buy above 34.6 for targets of 37.8 SL of 34 (One Month)
HMT: Buy above 80 for targets of 84 SL of 79 (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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