Wednesday, April 7, 2010

Market outlook for 08/04/10

The domestic market today closed on a positive note on the back of fresh buying that emerged across major sectoral indices, surpassing from the day's low during the final trading hours. The benchmark indices triggered today's session with flat note with positive bias tracking positive global cues. The BSE Sensex gained ground as Sensex exceeded 18,000 mark for the first time since 27th February 2008. However, during the afternoon session, the market tumbled down and fell below the neutral line, mainly due to the negative European markets which opened on a flat note. Moreover, some selective buying across the major indices helped the market to cut losses, and closed the day's trade with positive note.
Nifty closed the day at 5374.65 up by 8.65 points. Nifty April future closed at 5381, premium of 6.35 points.
  • FII bought in Cash (Net buy 338.78 Crore)
  • FII bought in index options, but sold in index futures and stock futures (Net buy 1178.06 Crore)
  • DII sold in Cash (Net sell 23.43 Crore)
  • US market ended just Flat to Negative.
  • 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: 5300 and 5400.
  • Put Call ratio stands at 1.36
  • Advance Decline for the day was 754:543
Over all view
Second successive doji which has formed an outside day (a higher high and a lower low than the previous day). If it occurs after a market has had a big move, it is often taken as a signal that momentum is waning for that move.This applies to the Nifty as the uptrend is 7 weeks old.
Oscillators on daily charts are overbought and showing negative divergence. Intraday oscillators are in neutral zone.Volumes were marginally higher than average and breadth positive.The upper trendline of the channel on half hourly charts has proved resistance since the last two trading sessions increasing the possibility of Nifty correcting to touch the lower trendline. This makes 5317 very important support. Resistance on the way up is at 5414-5487.

NIFTY Technical
Current Spot: 5374.65
Pivot: 5373
3DEMA: 5359
7DEMA: 5325
20DEMA: 5236
RSI (7 days): 77.46
Supports: 5347 - 5319
Resistance: 5401 - 5428

Target Nifty
Buy Nifty above 5383 - 5401 - 5425 - 5456 SL - 5371
Sell Nifty below 5365 - 5352 - 5321 - 5297 SL - 5376

Option Open Interest
Yesterday there was a huge Open Interest buildup in 5300 and 5400PE and 5500CE April Strike price indicating that Option writers are playing for 5350 - 5420 range for time being.

Option & Futures Call
Buy Nifty 5300PE above 52.3 for targets of 60.5, 71.3 SL - 48.1
Buy Nifty 5400CE above 64.7 for targets of 74.6, 84.9 SL - 61.1

Stock Ideas for the Day
Reliance Industries: Buy above 1140 for targets of 1144, 1156, 1169 SL of 1131
Reliance Industries: Sell below 1124 for targets of 1121, 1110, 1100 SL of 1137
Chennai Petro: Buy above 284.1 for targets of 290, 297 SL of 278
Jyoti Structures Ltd.: Buy above 167.8 for targets of 171, 176 SL of 163

Positional Call
Orient Papers: Buy above 55.5 for target of 61 SL of 53 (One Month)
Crompton Greaves: Buy above 269.8 for target of 282 SL of 263 (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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