Thursday, March 25, 2010

Market outlook for 26/03/10

The domestic market today closed on an optimistic note on the back of fresh buying that emerged at the lower levels across major sectoral indices in the final hours. Also, today the government has announced in the afternoon that the food price index rose an annual 16.22 per cent in the year to March 13th, lower than the previous week's reading of 16.30 per cent. The benchmark indices opened today's session with negative note tracking mixed global cues. Most of today's trade remained volatile as the government was report to unveil data on wholesale price indices for the year through 12th March 2010. However, the market trimmed losses in mid-afternoon trade on account of the opening of positive European market, as the buying interest emerged at this level. Going ahead, the market continued its recovery and closed the session with Positive note.
Nifty closed the day at 5260.40 up by 35.1 points. Nifty April future closed at 5277, premium of 16.6 points.
  • FII bought in Cash (Net buy 653.22 Crore)
  • FII bought in index futures, index options but sold in stock futures (Net buy 336.77 Crore)
  • DII sold in Cash (Net sell 156.19 Crore)
  • US market ended flat to Negative.
  • Global cues are flat to Positive.
  • SGX nifty is Positive as of now.
  • Most Active April Nifty Call Option: 5300 and 5200.
  • Most Active March Nifty Put Options: 5100 and 5200.
Over all view
Yesterday some buying seen in later part of the day in Market and Nifty ended with “White Small Candle” with longer lower shadow, favors buying on dips. Nifty is holding gain above early January supply line with strong immediate support at 5200. Daily momentum indicators are suggesting indecision at this juncture. Short term trend reversal resistance placed at 5310 and support placed at 5070 level. The in between range provide uncertainty over trend.

NIFTY Technical
Current Spot: 5260.40
Pivot: 5244
3DEMA: 5242
7DEMA: 5220
20DEMA: 5132
RSI (7 days): 73.27
Supports: 5220 - 5180
Resistance: 5284 - 5307

Option Open Interest

Target Nifty
Buy Nifty above 5277 - 5295 - 5320 - 5361 SL - 5254
Sell Nifty below 5249 - 5235 - 5194 - 5169 SL - 5260

Swing Trade

Hindustan Unilever (232)
Stock has broken Accumulation zone of 218-230 range with strong volume breakout and formed “White Opening Marubozu” a bullish candlestick pattern on daily chart. 3days EMA has given positive cross over to 8 days EMA. Daily momentum indicators are featuring in bullish zone. Looking at all above technical parameters traders with moderate risk appetite can consider Buy above 234 with tight stop loss of 229 for a target of 245.

Stock Ideas for the Day
Reliance Industries: Buy above 1094 for targets of 1097, 1105, 1113 SL of 1086
Reliance Industries: Sell below 1083 for targets of 1080, 1072, 1065 SL of 1091
Ajanta Pharma Limited: Buy above 193 for targets of 203, 215 SL of 188
Berger Paint: Buy above 58 for targets of 59.4, 61 SL of 57

Positional Call
GTL Infra: Buy above 40 for targets of 44 SL of 38 (One Month)
Sun Pharma Advanced Research: Buy above 99 for targets pf 105 SL of 97 (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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