Market outlook for 31/03/10

The domestic market today closed on a pessimistic note on heavy selling pressure across the sectoral indices following the concerns of further tightening of the monetary policy by RBI in the near future. The selling interest also emerged in the final hours as the investors remained cautious ahead of the quarter result of the Indian Inc. The benchmark indices opened today's session on a high note on back of Asian market which rose after a report showed that US consumers continued to spend last month. On the other hand the European market also opened on high note following the Greece success in raising money from the debt market. Back home the market continued to fall further despite of the positive signal from the European market and ended the session on negative zone. The IT stocks were the worst hit as heavy selling was witnessed from this basket. The rupee retreated from near 19-month highs today after some banks booked profits. While Realty, PSU and Power being the main gainers in the sectoral front.
Nifty closed the day at 5262.45 down by 40.40 points. Nifty April future closed at 5265.5, premium of 3.05 points.

• FII bought in Cash (Net buy 579.29 Crore)
• FII bought in index options but sold in stock futures and index futures (Net sell 69.29 Crore)
• DII bought in Cash (Net buy 100.11 Crore)
• US market ended flat.
• Global cues are flat to Positive.
• SGX nifty is Positive 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 0.99

Over all view
Inside day which is indecision, but the bearish candle almost engulfing of yesterday's real body shows a bearish bias. Daily oscillators are moving down from overbought area after showing negative divergence and half hourly oscillators are showing weakness. Strong support at 5187 to 5175.
Today was the first day which witnessed selling and ended at the low. I had called for caution since last few days on weakening internals of the market .The Nifty is still to make a lower low, so the bias is still up and shorting the market could still be risky.

NIFTY Technical
Current Spot: 5262.45
Pivot: 5280
3DEMA: 5272
7DEMA: 5255
20DEMA: 5171
RSI (7 days): 63.34
Supports: 5234 - 5206
Resistance: 5308 - 5353

Target Nifty
Buy Nifty above 5293 - 5313 - 5354 - 5381 SL - 5287
Sell Nifty below 5266 - 5250 - 5224 - 5183 SL - 5250

Option Open Interest

Option & Futures Call
Buy Nifty 5200PE above 77.9 for targets of 87.1, 96.6.4 SL - 72.8

Stock Ideas for the Day
Reliance Industries: Buy above 1098 for targets of 1100, 1111, 1121 SL of 1090
Reliance Industries: Sell below 1083 for targets of 1081, 1072, 1059 SL of 1095
Sree Renuka Sugar: Buy above 72 for targets of 73.5, 75.3 SL of 70
Praj Industries: Buy above 86 for targets of 88, 90.5 SL of 84
Bank of India: Buy above 345 for targets of 349, 356 SL of 338

Positional Call
Mundra Port: Buy above 779 for targets of 835 SL of 759 (One Month)
Nelco: Buy above 143 for targets of 151 SL of 140 (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

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