Markets For 31/03/2009

Daily Market Outlook: 31 March 2009

After moving upwards for five consecutive trading sessions, as predicted on last Friday Indian equity markets lost steam and took a nosedive to close in negative zone. It was the US market that triggered the fall as the US government task force rejected the viability plans of General Motors and Chrysler. Asian markets also tumbled. Further the weak opening of European markets added to the woes. While Sensex shaded 480 points to close at 9568, Nifty shaded 130.50 points to close at 2978. Financial heavyweights like SBI, ICICI and HDFC were amongst the biggest losers as they erased almost all their last 4 days gains in a single session. Some positive stock last day that remain positive in midcaps are Opto Circuit, S.Kumar’s, ICSA, KSK, Chambal Fert, NFCL, Thermax and Bombay Dyeing.

On the sectoral front, except consumer durables, all other sectoral indices closed in the red. Bankex, metals and realty were the major culprits with steep. While banking sector suffered from renewed concern, metal lost the plot on account of expected decline in demand. Interestingly, major selling was seen in Sensex based counters rather than the madcap and small cap counters. Market breadth was negative with 1471 declines and 904 advances. Certain stocks that are looking positive are ChambalFert (above 43), NFCL (above 19), HPCL (above 265), EKC and Financial Tech. Auto stocks could also be bought as they still retain the positive bias.

NIFTY (2978.15)

Support : 2945 / 2920 / 2890 / 2865 / 2840

Resistance : 3040 / 3065 / 3090 / 3105 / 3140

SENSEX

Support : 9425 / 9335 / 9285

Resistance : 9805 / 9900 / 10045

NIFTY FUT (2988)

Support : 2955 / 2915 / 2860

Resistance : 3015 / 3045 / 3105

MKT COMMENTS

NIFTY FUT OI down 5.43% with flat volumes indicating not only unwinding of long positions but forming of fresh short positions too.

We expect NIFTY FUT to trade volatile.

On Tuesday,Opening is Flat to Down,

Stay Short Below 2980,Sl Abv 3000,Tgt 2920-2870,

Sustain Above 3000,Buy with Sl Below 2980,Tgt 3070-3120.

POSITIONAL : Buy 50%NIFTY 2970 & other 50% 2940,Sl 2915,Tgt 3100

Buy OPTOCIRCUITS Above 85

Buy CHAMBALFERT Above 43

Buy SUNPHARMA Above 1110

Buy BRFL Above 145,Tgt 150/55,Sl 143

Buy TATAELEXSI Above 80,Tgt 84-86-92,Sl 79

Buy MARUTI Above 760,Tgt 775-790-830,Sl 740

Sell RELCAPITAL Below 335

Sell NTPC Below 185,Tgt 180/75/70,Sl 190

Sell SBIN(1022),Tgt 1010/1000/990,Sl Above 1040

Sell CIPLA Below 215,Tgt 210-205-195,Sl 220

Sell GAIL Below 235,Tgt 225-220-210,Sl 240

Sell M&M Below 370,Tgt 360-350-330,Sl 380

Sell WIPRO Below 240,Tgt 235-230-220,Sl 245

Buy TVSMOTORS April Above 22/23,Sl 21.4,Tgt 22.85/23.1/23.5/23.8/24 (Lot Size : 11800)

BHEL (1474) : Sell 1490/1500,Sl 1515,Tgt 1460/50/40/35

HDFCBK (945) : Sell 965/55,Sl 980,Tgt 940/30/20/10

RIL(1516) : Sell 1530/20,Sl 1540,Tgt 1495/80/50

Sell RPOWER April@ 103/01,Sl 104,Tgt 100/99.6/98.6/97.5/96.6/95.7/94.6/93.8 (Lot Size : 2000)

World Markets - Astrologically

Crude Oil / Gold / Silver

CRUDEOIL likely to make 1 more attempt for rise between 31st and 02nd April but in totality Crude Oil is looking weak till 07th April 2009. 2 Weekly close above US$ 51/ barrel will set higher targets of $67-$69 which will be achieved in coming weeks. Regarding Gold and Silver, we have already communicated 2-3 weeks back that till 25th March, both these metals will remain under pressure despite occasional minor rallies. Both GOLD and SILVER will try to stage come back early this week but after 31st March both Silver and Gold will turn weak for next 7-10 Days.

US Dollar/ Indian Rupee ( USDINR)
Astrologically, Indian Rupee may remain strong against US Dollar till 31st March but after that volatility can be expected in which US Dollar will be slightly stronger against Indian Rupee.

US Markets
Astrologically, Both Nasdaq and Dow Jones are likely to bounce back after initial weakness on 30th March but most indicators favour decline on 01st April and weakness may continue for 1-2 Days. Despite weekly movements on both sides, US Markets are likely to be positive till 8th-10th of April despite occasional declines and rallies.