"WEEKLY REPORT FOR THE WEEK 15.02.2010 TO 19.02.2010"

Last Week, we have seen that Sensex breaks 3-week losing streak and ends with positive led by information technology stocks.

Since we are approaching the Railway budget on 24th February and Union Budget on 26th February, the market will possibly remain in a consolidation mode in the coming week. However, Nifty is in uptrend with targets 4880, 4900, and 4950. Presently indicators, as suggested by derivatives, showing mild bullish trend in the market. From Derivative points of view, 4800 puts had open interest of 61 lacs (+ 8%) and 5000 calls had open interest of 60 lacs (- 7%). So 4800 and 5000 will be important levels to watch for NIFTY.

Short term Investor may watch IFCI. It is expected to move up speedily as Government has invited bids for restructuring of the company.

Globally keep an eye on Dow which will face resistance at 10210 levels. If this happens and Dow is able to scale the same, then good days will prevail here in India too.

Technically we could expect the trend reversal in nifty, when it closes above the level of 4950. If nifty close above the 4950, one should exit from their short positions & should focus on long side. The major support base for nifty seems to be around the range of 4650 to 4700.

For 15.02.2010 : May open negative to flat zone but one can see the short rallies in the market during the day which may take the Nifty to the levels of 4870 & 4900.

Titan, BRFL, Chambal Fert, Lupin, Jindal Saw, Orient Bank, Auropharma, India Cement, Mphasis & Dabur are in strong futures whereas Bajaj Hind, ICSA, Renuka, DLF, Ranbaxy, National Alum, EKC, Punj Llyod, Tata Steel & Hindalco are in weak futures.

For Intraday Nifty Future traders:
Signal   Price      Stop Loss     T-1       T-2      T-3
Buy      4832         4818           4855     4885    4922
Sell       4813         4822           4793     4755    4726

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Investors are advised caution while using information from this blog, take informed decision and only use the information to improve your judgment.