Tuesday, April 6, 2010

Market outlook for 06/04/10

The domestic market today closed on a strong note tracking positive gains in Asian markets and U.S markets which closed with higher note on Thursday 1st April. Also, the Finance Minister - Mr. Pranab Mukherjee said on Friday 2nd April that the Indian economy may expand by as much as 8.75 per cent in the 12 months through March. The benchmark indices opened today's session with firm note tracking firm global cues. The market surged to a fresh 25-month high in early afternoon trade backed by the fresh buying interest emerged at this level. Throughout the market continued to move northwards to hit fresh 25-months highs. However, the market was marginally gloomy during the mid-afternoon trade but soon regained its position and continued its journey with gains and closed today's session with firm note
Nifty closed the day at 5368.40 up by 77.90 points. Nifty April future closed at 5365.0, discount of 3.4 points.
  • FII bought in Cash (Net buy 766.07 Crore)
  • FII bought in index options, index futures and stock futures (Net buy 2625.89 Crore)
  • DII bought in Cash (Net buy 403.33 Crore)
  • US market ended in Green.
  • Global cues are flat to Positive.
  • SGX nifty is Positive as of now.
  • Most Active April Nifty Call Option: 5500 and 5400.
  • Most Active March Nifty Put Options: 5200 and 5300.
  • Put Call ratio stands at 1.22
  • Advance Decline for the day was 1074:235
Over all view
Nifty daily chart has formed “White Opening Marubozu” a bullish candlestick pattern and broken major resistance zone of 5310-5330 level. Detailed study of intraday chart suggests that market is in over bought zone and major resistance placed at 5380, crossing this, nifty may invite bull to take charge up to 5420 levels and strong support placed at 5340 level, below which, profit booking may take place. Over all technical scenario supports buying on dip strategy.

NIFTY Technical
Current Spot: 5368.40
Pivot: 5354
3DEMA: 5322
7DEMA: 5289
20DEMA: 5206
RSI (7 days): 77.27
Supports: 5330 - 5292
Resistance: 5392 - 5416

Target Nifty
Buy Nifty above 5370 - 5381 - 5400 - 5431 SL - 5351
Sell Nifty below 5345 - 5338 - 5307 - 5289 SL - 5356

Option Open Interest
On Thursday there was a huge Open Interest buildup in 5300PE and 5400CE April Strike price indicating that Option writers are playing for 5300 – 5400 range for time being.

Option & Futures Call
Buy Nifty 5300PE above 63.5 for targets of 73.2, 89.9 SL - 61.1
Buy Nifty 5400CE above 61.2 for targets of 66.1, 71.4 SL - 52.8

Swing Trade
Neyveli lignite (147.90)
After touching high of 165 in early march 2010 Stock was making lower lows and lower highs, yesterday stock has formed “Bullish Engulf” a bullish candlestick pattern on daily chart and reliability of this pattern is high. Daily momentum indicators have given positive cross over to signal line after floating in over sold zone. Short term moving averages showing sign of strength for up move. Looking at all above technical evidence traders with moderate risk appetite can consider Buy above 149 with tight stop loss of 146 for a Target of 155.

Stock Ideas for the Day
Reliance Industries: Buy above 1129 for targets of 1135, 1148, 1169 SL of 1115
Reliance Industries: Sell below 1112 for targets of 1108, 1089, 1075 SL of 1120
MSK Projects: Buy above 161 for targets of 164, 169 SL of 158
Godrej Ind: Buy above 155.5 for targets of 157.5, 161 SL of 152.5

Positional Call
Godawari Power: Buy above 275 for target of 292 SL of 268 (One Month)
JBF Ind: Buy above 123 for target of 130 SL of 120 (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.

1 comment:

Please leave your comments here...