Markets reacted positively to the announcements in the Union Budget, 2010 - the fiscal consolidation road map and the continuation of fiscal stimulus measures. The latter helped stocks in sectors such as real estates, infrastructure etc.
The key highlights of the Budget announcement, from an investment perspective, have been the maintaining of the fiscal deficit at 5.5% of the GDP, a reasonable borrowing programme, increasing tax slabs etc. etc.
However, we have also seen that some profit booking came in at the higher levels of the trading session which pulled the markets marginally lower from the days highs. 20 DMA resistance level of 4880 was broken by huge margin.
It closed above the 5 DMA and 20 DMA levels and RSI is around 94 indicating that the market is looking positive and entering the over valued zone. If the market closes above 4900 levels for three trading sessions then 20 DMA will turn as support for this markets, which will help to scale 5000+ levels.
GOOD for LONG-TERM ?
IFCI, IDFC, EDUCOMP, IRB INFRA, GVK POWER, RELCAP,
IFCI, IDFC, EDUCOMP, IRB INFRA, GVK POWER, RELCAP,
PFC, MOSERBAER, SUZLON.
I have gone through so many websites from different renowned analyst on their own field and some one them are:
I. Mr. Jindal: Very sharp move we seen in budget day in favour of bulls …………..nifty touch 4992 ( 50% retracement level of this fall -4990 ) ..and falls 70 odd points …closed at 4922 .
Now 3-4 question arises in my mind ………..I. Mr. Jindal: Very sharp move we seen in budget day in favour of bulls …………..nifty touch 4992 ( 50% retracement level of this fall -4990 ) ..and falls 70 odd points …closed at 4922 .
1. Falls from high because they ( big players ) dont want that retail investers and traders carry thier longs for next week ???.
2. Bulls have no power to sustain at higher levels because of sentiments of budget they came but again fails to sustain …so bears are in full control ?????????.
3. Market break 4930 and 4960 in upward rally and only comes to retest 4930 ???????????
My view = 5060-5070 is level to watch in upside ..as major resistance ..above this confirm bull trend will start again .. and in downside 4875-4830 two major supports and hopes for bulls .. break below bears can kill market and we can see levels like 4680-4550-4500.
For Tuesday (02.03.2010) : One can take long position on Tuesday with a SL of 4868. Immediate supports for Tuesday are 4910, 4898, 4886, 4848 and immediate resistances for Tuesday 4934, 4946, 4959 and 4995. Maintain the SL of 4868 for Tuesday.
WEEKLY REVIEW: 02.03.2010 - 05.03.2010:::
BSE - Support 15450 - 16100; Resistance 16700 – 17000
NSE - Support 4675 – 4850; Resistance 4950 – 5095
My personal view: This market now turns into sell on high as it enters into over valued zone.
Note: I am thankful to Mr. Jindal, Mr. Sethi (for using gif) and others. Someone requested me to write on Options trading. Probably I'll write on Option trading only for educational basis.
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