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Market Outlook -
March 15,
2010 |
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The cues from across the Atlantic are flat and
the Asia is trading in a nonchalant mood. The
SGX March Nifty is at 5148, absolutely flat
compared to the last Friday’s closing. Asian
markets either marginally down or marginally up:
no great shakes anyway.
The Nifty PCR as at the end of last Friday fell
from 1.50 to 1.44. It appears that sugar stocks
and Hindustan Unilever have added to their tally
of short positions. However, there are some
metal and oil & gas sector stocks that seem to
have moved other way round.
The Nifty VIX continues to move down and
recorded a low value of 19.73, this implies that
the volatility reading is level low and it may
lead to a sharp swing going forward the
direction of which is not yet known.
The resistance zone for the day would be between
5170 and 5196 while strong support, in the event
of any major profit booking would come between
5097 and 5090.
While we can start elaborating the perceived
overbought status of the market and the fresh
building of short positions like in Hind
Unilever we need to keep in mind that the PCR is
still above 1.30 and all the short term moving
averages are going up with a clear upward
gradient. This suggests that this is a market to
buy on declines and not so much press aggressive
short sells.
One thing, however, should be kept in mind:
unless the Nifty clears the 5150 – 5190 range
decisively this market is not going to show any
strong uptrend even though individual counters
may march northwards.
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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