Tuesday, March 30, 2010

Market outlook for 30/03/10

The benchmark index today closed on a positive note tracking favoring cues from the global market. The Asian Market opened on a positive note on account of the launch of the China’s first stock index futures, which was welcomed by the investors. The stocks initially firmed up tracking the global stocks that climbed on speculation that the economic confidence in Europe will improve after the euro zone policymakers agreed to create a safety net for debt-laden Greece. Back home the market sentiments was firm as Foreign funds have made heavy purchases of Indian stocks this month with stood at Rs.12716.71 crore. Despite the key benchmark index gained, the market breadth remained negative.
Nifty closed the day at 5302.85 up by 20.85 points. Nifty April future closed at 5322.2, premium of 19.35 points.
  • FII bought in Cash (Net buy 1062.82 Crore)
  • FII bought in index futures, index options but sold in stock futures (Net sell 63.85 Crore)
  • DII sold in Cash (Net sell 270.45 Crore)
  • US market ended flat to Positive.
  • 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 0.88
Over all view
Nifty daily chart has formed “Spinning Top” an uncertain candlestick pattern at higher level, suggests some amount of supply at higher level. Although Nifty mange to close above previous day’s high and broken psychological 5300 level. Daily momentum indicators are in over bought zone which indicates profit booking on higher level cannot be ruled out, technically buying on dips strategy will work well as we are in intermediate term up trend.

NIFTY Technical
Current Spot: 5302.85
Pivot: 5305
3DEMA: 5283
7DEMA: 5252
20DEMA: 5161
RSI (7 days): 78.68
Supports: 5280 - 5258
Resistance: 5328 - 5353

Target Nifty
Buy Nifty above 5323 - 5346 - 5376 - 5411 SL - 5311
Sell Nifty below 5306 - 5287 - 5252 - 5222 SL - 5317

Option Open Interest
Option & Futures Call
Buy Nifty 5400CE above 65.5 for targets of 75.9, 86.6 SL - 61.9
Buy Nifty 5200PE above 64.5 for targets of 72.9, 82.4 SL - 61.1

Swing Trade
Tata Chemical (319.80)
Stock is making higher highs and higher lows from last three trading days and yesterday stock has formed “Long White Candle” a bullish candlestick pattern with decent volume breakout, moreover Stock has also given mid January supply line breakout. Daily momentum indicators are also featuring in bullish zone. Looking at all above technical parameters traders with moderate risk appetite can consider Buy above 321 with tight Stop Loss of 316 for a Target of 336.

Stock Ideas for the Day
Reliance Industries: Buy above 1104 for targets of 1107, 1114, 1121 SL of 1095
Reliance Industries: Sell below 1088 for targets of 1085, 1081, 1070 SL of 1101
Idea: Buy above 66.5 for targets of 68, 70 SL of 65.5
Rajesh Exports: Buy above 115.5 for targets of 117.8, 121 SL of 112.5
Shyam Telecom: Buy above 74 for targets of 75.5, 77.5 SL of 73

Positional Call
IVRCL Infra: Buy above 163 for targets of 175 SL of 159 (One Month)
Ambuja Cement: Buy above 121 for targets of 127 SL of 118 (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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