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Market Outlook -
April 08,
2010 |
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The Dow sneezes and Asia catches cold: the DJIA
fell last night by 72 points and this morning
Asian markets are down anywhere between 0.25%
and 0.75%. The SGX April Nifty is down by 24
points at 5357 on low volume trades.
Today, the levels between 5340 and 5329 would
assume great importance. This is the crucial
support zone. If this range were to be broken
then we may find the Nifty coming down further
to test the range between 5319 and 5301.
However, the range between 5280 and 5270 would
be the major support area.
We expect the market to open lower and probably
test the range between 5338 and 5319 and take
support there to bounce back.
On the upside, the range between 5389 and 5399
would continue to act as a supply zone while the
first deciding level would be 5359. The index
must stay above 5359 to indicate strength. If it
were to stay below this level then no intraday
or overnight long positions should be held.
However, we consider this to be a pause and not
any major cause for concern for the bulls since
the Nifty PCR is at a healthy 1.32 and the Nifty
VIX has moved up only 12 basis points to stay at
17.32 yesterday. Thus, we can expect buying to
come back at lower levels.
Rajat K. Bose |
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| Notes: |
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All prices relate to the NSE, unless otherwise mentioned. |
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Stop-loss levels are given so that there is a level below/above, which the market will tell us that the call has gone wrong. Stop-loss is an essential risk control mechanism; it should always be there. |
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Book, at least, part profits when the prices reach their targets; if you continue to hold on to positions then use trailing stops to lock in your profits. |
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Don't chase a stock, if you are unable to buy a stock because it hits circuit levels on successive days, don't buy that. |
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The analyst and his clients may or may not have positions in the securities mentioned above. |
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Trading involves considerable risk. Trade at your own risk to the extent you are comfortable. The analyst shall not be responsible for any losses incurred for acting on these
recommendations. |
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Rajat K Bose
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