Sunday, March 28, 2010

Market outlook for 29/03/10

The domestic market closed on a positive note on the back of favourable Asian cues and on strong reports regarding the FII inflows this month. The benchmark indices triggered today's session with optimistic note on the back of relax in food prices for the 3rd consecutive week in mid-march. Moreover, the China Financial Futures Exchange said that China will begin trading of stock index futures on 16th April. The first contracts to trade will be for May, June, September and December. However, volatility remained throughout the day, as both buying and selling emerged simultaneously across the counter, but managed to trade above the dotted line. Moreover, negative European stocks did not affect the sentiments of the traders and the benchmark indices closed the session with positive note. Nifty closed the day at 5282 up by 21.6 points. Nifty April future closed at 5292, premium of 10 points.
  • FII bought in Cash (Net buy 590.90 Crore)
  • FII bought in index futures, index options but sold in stock futures (Net buy 928.75 Crore)
  • DII bought in Cash (Net buy 49.41 Crore)
  • US market ended flat.
  • Global cues are flat to Positive.
  • SGX nifty is Negative as of now.
  • Most Active April Nifty Call Option: 5400 and 5300.
  • Most Active March Nifty Put Options: 5200 and 5300.
  • Put Call ratio stands at 0.92
Over all view
Last week Nifty opened on “Black Opening Marubozu” a bearish candlestick pattern but since then market recovered in three days with higher highs higher lows and broken previous swing high of 5269 level. Daily momentum indicators are featuring in overbought zone. On weekly chart Nifty has formed “High Wave” pattern which favors uncertainty in market and if Nifty breaks down 5260 level on closing basis then we may see some sign of bear attack in market. Immediate Strong resistance placed at 5315 level and two closes above this level will invite bull to take charge and possible target will be 5375 level. Over all buying on dips strategy works well as long as Nifty is trading above 5145 level.

NIFTY Technical
Current Spot: 5282.00
Pivot: 5279
3DEMA: 5262
7DEMA: 5236
20DEMA: 5146
RSI (7 days): 76.12
Supports: 5264 - 5246
Resistance: 5297 - 5312

Option Open Interest

Target Nifty
Buy Nifty above 5301 - 5311 - 5328 - 5348 SL - 5291
Sell Nifty below 5285 - 5279 - 5258 - 5242 SL - 5296

Swing Trade
Dabur (165.20)
Stock was in down trend from early march after reaching high of 175 level , on 25 March stock has formed “Hammer” and on 26 march Stock has formed “Long White Candle” this both favor bulls in coming trading days. Daily RSI and Stochastic has given positive crossover to signal line and is on the verge of bullish zone. Short term moving averages showing upward move in stock. Looking at all above implication traders with moderate risk appetite can consider Buy above 166 with tight stop loss of 162 for a Target of 174.

Stock Ideas for the Day
Reliance Industries: Buy above 1108 for targets of 1111, 1115, 1122 SL of 1099
Reliance Industries: Sell below 1095 for targets of 1092, 1089, 1080 SL of 1105
Axis Bank: Buy above 1197 for targets of 1203, 1215 SL of 1178
Polaris: Buy above 178.5 for targets of 180, 183 SL of 176
GujNreCoke: Buy above 88.4 for targets of 89.4, 91 SL of 86.9

Positional Call
Orchid Chemicals: Buy above 160.5 for targets of 172 SL of 153 (One Week)
Vijaya Bank: Buy above 47.5 for targets of 50.5 SL of 45.5 (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

Call 09831497250 or mail us @ S&P Wealth Creators with your Name and Mobile No. for subscription offer of intraday calls during Market hours.

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