"MARKET OUTLOOK & TRADING IDEA FOR WEDNESDAY (06.04.2011)"

FIIs were net buyers with the tune of ` 723.29 crore (prov. cash market fig).

The BSE 30-share Sensex was down 14.91 points or 0.08% to 19,686.82. The Sensex fell 178.19 points at the day's low of 19,523.54 in afternoon trade. The index gained 68.48 points at the day's high of 19,770.21 at the onset of the trading session, its highest level since 7 January 2011. The S&P CNX Nifty was up 1.60 points or 0.03% to 5,910.05, its highest level since 6 January 2011. The Nifty struck a high of 5,928.65 in early trade. The BSE Mid-Cap index rose 0.79% and the BSE Small-Cap index rose 1.38%. Both these indices outperformed the Sensex.

The market breadth was strong. On BSE, 2,009 shares advanced while 931 shares declined and a total of 74 shares remained unchanged. Among the 30-member Sensex pack, 18 declined while the rest of them gained.

The total turnover on BSE amounted to ` 3681 crore, higher than ` 3212.45 crore on Monday, 4 April 2011.

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VIEWS FROM DIFFERENT BROKING HOUSES:

SKP SECURITIES: “Nifty future may face resistance at 6000-6100 and take Support at 5885-5770”.

CHARTPUNDIT.COM (Hemen Kapadia): “Market trend is positive and as long as we remain above 5920 in terms of Nifty Futures one can expect the rally to continue”.

ASK INVESTMENT (Sameer Kamdar): “This is a one-sided rally, and I don’t see too much of huge upside going forward from here. Not comfortable in buying any more at these current prices. I don’t think one can stand against the flow of money and actually bet against the market but fundamentally we must also realize that you are in market where the oil prices are significantly high, inflation continues to be higher and nothing seems to have really changed for the past 10-15 days, except for the fact that possibly the FII appetite is back. So they have made their 10-20% in the west this year and now are hungry for more growth. So they bought the market from the lower levels. I wouldn’t be very comfortable putting in new money at these prices. There is no reason to repent even if one has missed the rally”. 

CANARA BANK SECURITIES (CanMoney): “Technically, Nifty exhibited an another day of consolidation and after moderate cuts, regained the lost pitch at closing. Owing to good buying and positive sentiments, positive momentum of last week continued. Today, Nifty again exhibited its strength and after descended to 5856 levels moved up to cross 5900 level and closed above that. This may spur positive sentiments among the buyers. Today, despite initial sluggishness, bulls finally outnumbered bears and Nifty maintained its closing above the sentimental levels of 9,14, 50 & 100 day’s SMA 5763, 5639, 5511 & 5718 these levels may act as new supports, in coming sessions. In today’s session, VIX corrected a little lower level of 19.90%, indicating modest volatility in market in the forthcoming sessions. RSI (14) for the session was at 71.09 levels and MACD was above the signal line, thus combined together they are giving the signals that market may witness some consolidation but positive movement in coming sessions is more likely”.

FAIRWEALTH SECURITIES: “Nifty closed at 5910 with the formation of hanging man which is suggesting us that the Nifty is getting exhausted. Next session’s i.e. 06/04/2011 range may be in between 5855-5930. On the upperside there may be resistance at 5951/5972 and on the downside the Nifty may take the support at 5801/5752. Traders are advised that 5930 level should be treated as a strong resistance. In the next session, Bank nifty is expected to trade in the range 11678-11960. Also, 12060 might be strong resistance level for Bank Nifty. 11580 might act as strong support level for Bank Nifty”.

KARVY STOCK: “The market will take cues from the global markets and is expected to open on a flat to positive tomorrow. Trade long in Nifty from current levels else from 5900 with stop loss placed above 5870 targeting 5950 levels”. 

GABA & GABA FINANCIAL ADVISORS PVT LTD (Prakash Gaba): “...‘Technically the next logical target is 5956 and beyond that to 6020’ the market unfolded volatile and closed flat for the day...technically the logical target of 5956 stays but the market gives a feeling that it is running out of steam and so reaction is not ruled out…The support for the Nifty is at 5860 and resistance at 5956-6020. BSE Sensex: (19687) the crucial support on the Sensex on the downside is 19560 and resistance at 19842-19991-20062”.

IIFL (Amar Ambani): “The subdued price action in today’s session was in sync with the lacklustre global cues as investors turned a little wary over rising crude oil prices. Going ahead, the Indian market could witness some consolidation but the overall bias will stay upbeat due to renewed pick-up in FII inflows. Corporate earnings have been factored in but any surprises will have some stock specific impact”.

MICROSEC SECURITIES: “We expect the positive rally of Nifty would be continuing to 5970. However the leading indicators (like Stochastic and RSI) are giving the over bought signal of Nifty. So the short term correction to 5700 can not be ruled out. On an intra-day basis Nifty has a support at 5865 and is likely to face a stiff resistance near 5930. If Nifty breaks 5865, it may further go down to 5820 and then 5790. However, if it is able to sustain above 5930, the level of 5970–6010 would become the next target”.
BONANZA ONLINE: “After showing strength, Nifty made hanging man candlestick pattern on daily charts, which shows indecision among bulls and bears. Nifty is trading in short term up trend. Nifty has resistance at 5950 levels and traders should wait and see weather Nifty manages to sustain above 5950 levels. IF Nifty does not able to maintain above 5950 levels then profit booking may be seen from higher levels. For Daily Purpose, Trend deciding level is 5900. If Nifty shows strength above 5900 level, then rally to 5950/6000/6050 levels may be seen. If Nifty does not show strength above 5850 levels then profit booking till 5850/5800/5750 may also be seen”.

ANGEL BROKING (Daily Outlook): “The trend deciding level for the day is 19660/5898 levels. If Nifty trades above this level during the first half-an-hour of trade then we may witness a further rally up to 19797–19907/5941-5971 levels. However, if Nifty trades below 19660/5898 levels for the first half-an-hour of trade then it may correct up to 19550–19414/5868-5825 levels”.

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