Friday, March 9, 2012

Nifty outlook for 09-Mar-2012

Nifty Daily Chart

In the past:
Between Dec, 2011 and Feb, 2012 we have seen that the December resistance of 5075 had become support for February and we saw Nifty taking off from 5075 area to reach a high of 5617 by 21st Feb, this was supported with good volms too, shown by arrow on volume chart.
Current scenario:
The past two sessions were volatile due to News release and we see buyers waiting for Nifty to give some signal so that they can enter the market.
On the chart above, demand zone of Nifty has been shown (5160-5075 is the demand zone for Nifty). Even if Nifty reaches this area do not short, but look for any signs of weakness in the bears and be vigilant for buying opportunities.
Future Likely Scenario:
Nifty may touch 5320 and if the news from RBI policy review and Budget cheers the market then expect Nifty to go higher and touch 5375, 5575 and beyond. 5375-5460 is a crucial resistance area.
How to trade Nifty?:   Direction : Mildly Bullish
Go long if Nifty spot crosses 5255, Tgt 1 = 5320 & Tgt 2 = 5410. Stop loss = 5207
Bullish Stocks: JP Associates (cmp 75, tgt 80/85) , IVRCL infra(cmp 52,  tgt 56/62)