Market outlook for 07/04/10

The domestic market today closed on a flat note on the back of fresh selling that emerged across major sectoral indices in the final hours. Also, the investors were eyeing on the minutes of the 16 March 2010 Federal Open Market Committee meeting, which was scheduled to release today. The benchmark indices belled today's session with flat note after a sharp rally in the previous session, tracking mixed cues from the Asian markets. However, during the morning trade, the domestic markets spurts to touch its highest level in more than 25 months following the overnight strength in the U.S markets but could not sustain the momentum and tumbles on profit booking across the selective indices. A bout of volatility was witnessed across the counter as the key benchmark indices oscillated between positive and negative zone near the flat line. Going ahead, the market gained its position further but it once again fall down below the flat line and closed today's session with negative note.
Nifty closed the day at 5366 down by 2.40 points. Nifty April future closed at 5371.05, premium of 5.05 points.

• FII bought in Cash (Net buy 261.70 Crore)
• FII bought in index options, index futures and stock futures (Net buy 1621.67 Crore)
• DII bought in Cash (Net buy 81.07 Crore)
• US market ended just 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: 5300 and 5400.
• Put Call ratio stands at 1.2
• Advance Decline for the day was 737:567

Over all view
Doji star at resistance of 5385 on daily charts, ringing alarm bells. Volumes were marginally higher and breadth though positive, did not impress. Daily oscillators are in negative divergence. Half hourly oscillators have turned down from overbought zone.
A higher high and higher low keeps the trend up. However, the doji star which is a reversal pattern makes one cautious. A strict stop loss of 5287 (10 DEMA) should be maintained on longs.

NIFTY Technical
Current Spot: 5366.00
Pivot: 5369
3DEMA: 5344
7DEMA: 5308
20DEMA: 5221
RSI (7 days): 76.43
Supports: 5349 - 5332
Resistance: 5386 - 5406

Target Nifty
Buy Nifty above 5373 - 5383 - 5401 - 5417 SL - 5366
Sell Nifty below 5359 - 5353 - 5337 - 5319 SL - 5372

Option Open Interest

Yesterday there was a huge Open Interest buildup in 5300 and 5400PE 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 54.5 for targets of 61.2, 69.9 SL - 51.1
Buy Nifty 5400CE above 61.2 for targets of 66.5, 73.4 SL - 52.8
Swing Trade

Stock Ideas for the Day
Reliance Industries: Buy above 1127 for targets of 1129, 1135, 1141 SL of 1123
Reliance Industries: Sell below 1119 for targets of 1116, 1112, 1108 SL of 1128
Cairn India: Buy above 308.5 for targets of 313, 319 SL of 305
Bajaj Hindustan: Buy above 136 for targets of 138, 141 SL of 133

Positional Call
Idea Cellular: Buy above 63.5 for target of 70 SL of 62 (One Month)
REC Ltd.: Buy above 262 for target of 274 SL of 256 (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.