"MARKET OUTLOOK FOR FRIDAY (04.03.2011)"

The BSE 30-share Sensex was up 43.26 points or 0.23% to 18,489.76, its highest closing since 17 February 2011. The index gained 157.07 points at the day's high of 18,603.57 in early afternoon trade. The Sensex lost 192.88 points at the day's low of 18,253.62 in morning trade. The S&P CNX Nifty was up 13.90 points or 0.25% to 5,536.20, its highest closing since 17 February 2011. The Nifty hit high of 5,570.75 in early afternoon trade. The BSE Mid-Cap index rose 0.33% to 6,598.95 and outperformed the Sensex. The BSE Small-Cap index rose 0.21% to 8,019.88, underperforming the Sensex.

The market breadth was marginally positive. On BSE, 1,425 shares advanced, 1,417 declined and a total of 107 remained unchanged. Among the 30-member Sensex pack, 16 rose while the rest fell.

BSE clocked turnover of Rs 3,806 crore, higher than Rs 3,374.56 crore on Tuesday, 1 March 2011.

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VIEWS FROM DIFFERENT BROKING HOUSES:

SKP SECURITIES: “Nifty may face resistance at 5630-5750 and take Support at 5470-5400”.

DANI SECURITIES: “Nifty may face resistance around 5600-5630 whereas It may take support around 5430–5390”.

ANGEL BROKING (Mileen Vasudeo): “Market opened lower, traded with extreme choppiness but recovered from day’s low to close in green. At present there is no sign of weakness on the daily chart. Hence, if indices trade above 18,604/5,570 level then they are likely to test the prior swing high of 18,690/5,600 levels and the 200 day SMA of 18,800/5,626 levels. On the downside, 18,200-18,100/5,450-5,422 levels may act as support for the day”.

CANARA BANK SECURITIES (CanMoney): “Technically, Today, Nifty formed another big bearish candle, strengthening the fear about further correction in the existing levels. As per candlestick pattern, Nifty formed two continuous bullish candles, which depicts a bullish trend in short term. In today’s session bears completely dominated by the bulls and carried forward the short term negative movement.  Today, Nifty has breached the maintained support of 5420, 5480 and the psychological level of 5000 and closed on the higher side. Nifty also hold the vital support level of 9 and 14 placed at 5427, 5437 and these level act as a new support level in coming days. However, Nifty not able to break the 50, 100 and 200 days SMA which are placed at 5660, 5844 and 5651 respectively and these levels are acting as the new resistance for the coming sessions. VIX jumped to a high value of 22.96% when compare to last trading session value of 22.20%, thus indicating higher volatility in market in the forthcoming sessions. RSI (14) for the day was at 52.63 levels and MACD was above the signal line, thus combined together they are giving the signals that market may witness ranged movement in coming session”.

BONANZA PORTFOLIOS (Puneet Kinra): “Nifty showed volatiles session and closed in green. After a long white morubozu candlestick pattern, Nifty made nearly harami candlestick pattern on Daily charts, which shows that bullish Momentum has declined a bit. Buying interest may be continuing if Nifty manages to sustain above 5,550 levels. Else some profit booking may also be seen. For daily purpose, trend deciding level is at 5,540-5,550. If Nifty shows strength above 5,550 level, then rally to 5,625/5,700 levels may be seen. If Nifty does not show strength above 5,540 levels then profit booking till 5,475/5,430/5,400 may also be seen”.

GEOJIT BNP PARIBAS FINANCIAL SERVICES (Alex Mathews): “High flying crude price kept the markets in a range with WTI crude above USD 101. For Nifty, the major resistance is there at 5,571 and 5,650 (200DMA) while the support is there at 5,496 and 5,455 levels”.

IIFL (Amar Ambani): “Right now everyone’s obsessed with crude oil. So, any news (good or bad) will have an immediate impact on oil prices and other markets. That exactly was the case with the markets today. News about a possible settlement to the Libyan crisis cheered up the markets, albeit only marginally. Going ahead markets will watch the US jobs data on Friday and confirmation of whether Libya is heading for peace after so many days of strife".

MAJOR HEADLINES:

Montek Singh Ahluwalia, Deputy Chairman of India's Planning Commission, said on the back of the fluctuating crude oil prices and mounting inflation numbers, that India should not worry about oil prices in the short run. On inflation, he said, “Inflation will go down to 7% by mid March and conditions are ripe for Indian growth".

Both Libyan leader, Muammar Gaddafi and President of the Arab League has agreed to a peace plan from Hugo Chavez, Venezuela President.
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FOR TODAY: EU as well as US markets closed green. All Asian markets are trading on positive side. SGX Nifty is trading around 5588, 34 points up (as of now; around 8.15 AM) indicating that Nifty may ope around 5589 level and try to go above 5600. If and only if, nifty spot can cross 5610 level with volume and hold, we may see even 5700 level in this series.