Wednesday, March 24, 2010

Market outlook for 25/03/10

The benchmark Nifty ended a volatile session modestly higher. It had opened strong in the early trade post correction on Monday on rate hike concerns. The volumes spiked ahead of futures and options (F&O) expiry. The March 2010 F&O contracts will expire on Thursday.
The Nifty April futures sustained big premium today as well; it ended with 14 points premium as per provisional data. Lot of unwinding of positions were seen; Nifty 5,300 Put shed 17.4 lakh shares in open interest and even Nifty 5,200 Put shed 12.9 lakh shares in open interest.
  • Nifty closed the day at 5225.30 down by 20.1 points. Nifty February Future closed at 5226.7, premium of 1.4 points.
  • FII bought in Cash (Net buy 359.75 Crore)
  • FII bought in index futures but sold in stock futures and index options (Net buy 391.45 Crore)
  • DII sold in Cash (Net sell 73.39 Crore)
  • US market ended in Red.
  • Global cues are flat to Positive.
  • SGX nifty is Negative as of now.
  • Most Active March Nifty Call Option: 5300 and 5200.
  • Most Active March Nifty Put Options: 5200 and 5300.
Over all view
On 23rd March, Accumulation/Distribution & PVT Lines are pointing upwards, while RSI, MFI & Stochastic Lines are pointing downward & trying to come out of OverBought region. According to ADX it is still a strong trend (UpTrend) but just as yesterday, also today ADX Line is pointing downward, CCI has come below 100 level & is flat. FIIs are still the buyers while DIIs sold much less in comparison to FIIs.
The inside day upper limit is at 5260 and lower limit is at 5187. Break on either side should give us the direction for trade. Being neutral till further clarification would be prudent.

NIFTY Technical
Current Spot: 5225.30
Pivot: 5211
3DEMA: 5225
7DEMA: 5207
20DEMA: 5118
RSI (7 days): 67.94
Supports: 5198 - 5171
Resistance: 5248 - 5271

Option Open Interest

Target Nifty
Buy Nifty above 5231 - 5245 - 5266 - 5294 SL - 5218
Sell Nifty below 5213 - 5202 - 5175 - 5154 SL - 5223

Option & Futures Call
Buy Nifty 5200CE at 33.5 for targets of 46.6, 64.2, 85.5, SL of 18.9
Buy Nifty 5300PE at 80.1 for targets of 86.6, 95.6, 116.4, SL of 69.9

Stock Ideas for the Day
Reliance Industries: Buy above 1094 for targets of 1096, 1102, 1112 SL of 1085
Reliance Industries: Sell below 1082 for targets of 1079, 1073, 1067 SL of 1090
Cairn India : Buy above 292 for targets of 296, 300 SL of 288
Jayaswal Neco : Buy above 41 for targets of 42.1, 43.5 SL of 39.1
Indusind Bank : Buy above 170 for targets of 173.5, 176.5 SL of 167

Positional Call
Vardhman Textiles: Buy above 231 for targets of 239 SL of 226 (One Month)
ITI: Buy above 47.5 for targets of 50 SL of 46 (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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