Market outlook for 03/09/09

The Indian market has shown a third day negative close and same can be attributed to the weak opening of the European markets for the third straight session on renewed worries about the balance sheets of U.S. banks and apprehensions about stretched valuations weighed on market movement. One should exit all longs if Nifty level of 4585 is broken and keep Nifty support of 4548 and resistance at 4650 under watch because if the level of 4548 is also broken than Nifty will tank to 4464 level.

Yesterday I thought below 4625, Nifty Future will slide upto 4548-4522 level. It kissed low of 4571 & taken U-turn. Intraday made high of 4660 and closed at 4614 level.

Now, What to expect from this level ?

Above 4628 will favour BULLS…Intraday will zoom to kiss 4663-4674. Crossover above 4674 with volumes……then huge short covering not ruled out upto 4709-4720.

Support at 4589, 4567 level.

Major or crucial support: 4548-4525, Break below 4525 will create all-round panic in Market.

Always Remember: I do not convince myself that I am right. I just watch stock movement and make my conclusions. When market behavior changes, so does my strategy. Market movement is the ultimate truth. I am not trying to outsmart or outguess it. I live in the here and now. My mind is open to possibilities.

NIFTY Technicals:
Current Spot: 4608.35
Pivot: 4611.80
Supports: 4573 & 4538
Resistance: 4647 & 4686

Stock Idea for the Day
BUY SHREE ASHTAVINAYAK @66 TARGET 68 SL 64.50
BUY CUMMINS @334 TARGET 346 SL 325
BUY EDUCOMP @4070 TARGET 4150 SL 4045
BUY IDBI @ 101.45-102 TARGET 105 SL 98.90
BUY HDFC BANK @1440 TARGET 1450, 1465 SL 1432
BUY BOI @335 TARGET 338 AND 342, SL 330
BUY RELIANCE CAPITAL @892 TARGET 920 SL 880
BUY SUZLON @96 TARGET 98,100 SL 94.80
BUY BPCL @530 TARGET 538,543,550 SL 523
BUY BRFL ABOVE 215 TGT 219 221 SL 212.50
BUY APTECHT ABOVE 180 TGT 184 186 SL 177
BUY ESSAROIL ABOVE 152 TGT 154 156 SL 149
BUY NEYVELILIG ABOVE 133 TGT 135 136 SL 131.50
BUY GAIL @345 TARGET 351, 355 SL 341
SELL SUZLON <95 TARGET 93,91 SL 96.20
SELL BPCL <523 TARGET 516,511,505 SL 530

Positional calls for 4-5 days
BUY TCS @530 TARGET 580+
BUY BALAJI TELE @66 TARGET 75 SL 63.50

Positional calls for 1 month
BUY ABAN LLOYD FOR INVESTMENT.. TARGET 2300+
BUY TORRENT PHARMA FOR 15-20 DAYS
BUY SATYAM FOR 20-25 DAYS..... TARGET 150+
BUY IFCI @52-53 TARGET 65

Options calls
BUY TATA STEEL CALL 420 SEPT @21-22 TARGET 35
BUY RELIANCE CALL OPTION 2010 SEPT @ 62-64 TARGET 95

Use strict STOP LOSS in each and every trade in this kind of volatile market and Trade at your own risk.

Thanks & Regard

Market Pulse S&P Team