Friday, April 16, 2010

Market outlook for 16/04/10

Selling pressure across the counter on back of weak global market led the key benchmark indices to close on a bearish note. The key benchmark indices ended the session on negative note on back of negative European market which was trading in red due to the fall in copper prices. Moreover the US stock futures which opened in low also hampered the investor's sentiment and made the market fall further in the final session. However the Asian market opened the day on a positive note on back of strong Chinese GDP which grew at 11.9 per cent during the first quarter of 2010 as against the same period last year. On the other hand better than expected US earnings reports bolstered confidence in the global economy. Back home the investors sentiments were hampered following the surge in the domestic inflation figures or the wholesale price index (WPI) that rose 9.90 per cent in March, which was the fastest in 17 month. Selling interest emerged across the counters with Oil&Gas stocks leading the sectoral indices followed by Bankex, CG and FMCG. While buying interest remained across Realty, CD and HC stocks.
Nifty closed the day at 5273.60 down by 49.35 points. Nifty April future closed at 5277.3, premium of 3.70 points.
  • FII bought in Cash (Net buy 99.70 Crore)
  • FII sold in index futures and stock futures but bought in index options (Net sell 390.83 Crore)
  • DII sold in Cash (Net buy 76.87 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.
  • Advance Decline for the day was 467:824
Over all view
The range between 5383 and 5290 was finally broken on the downside after touching the resistance at 5373, confirming the bearishness. The immediate target is of 5180. Support closer to this level are at 5187 and 5167. A fall below these levels can accelerate the correction.
The 20DEMA is currently at 5268. If this level holds then the uptrend may resume.

NIFTY Technical
Current Spot: 5273.60
Pivot: 5304
3DEMA: 5303
7DEMA: 5316
20DEMA: 5268
RSI (7 days): 43.54
Parabolic SAR: 5382
Supports: 5235 - 5196
Resistance: 5343 - 5412

Target Nifty
Buy Nifty above 5312 - 5345 - 5414 - 5454 SL - 5305
Sell Nifty below 5269 - 5240 - 5201 - 5131 SL - 5310

Stock Ideas for the Day
Reliance Industries: Buy above 1110 for targets of 1119, 1149, 1167 SL of 1101
Reliance Industries: Sell below 1085 for targets of 1076, 1059, 1028 SL of 1107
GujNreCoke: Buy above 90.5 for targets of 91.5, 93 SL of 89.7
Jai Corp: Buy above 278 for targets of 283, 289 SL of 272
Graphite India: Buy above 90.2 for targets of 92.1, 94.3 SL of 88.1

Positional Call
Lanco Infratech: Buy above 57.1 for target of 58.9 SL 56 (One Week)
Value Industries Ltd.: Buy above 26.15 for target of 28.50 SL 25.30 (One Month)

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

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S&P Wealth Creators

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