Market Review for 4 Feb 2010

February 4, 2010 by

Nifty recovered smartly after Tuesday’s sell-off, signaling that the pullback is not over yet. The index has already retraced 23.6% of the fall and the next level to watch out for is 4976, which is 38.2% retracement of the fall. The index is trading well above the hourly averages and the hourly momentum indicator is also positive. The market breadth was quite positive but the volumes that were witnessed during the sell-off were lacking, which indicates that this is merely a pullback in the form of wave two up. As a confluence of these developments, we maintain our short-term bias up and revise our reversal level to 4814. Total open interest in the market was Rs105, 575 crore and Rs3, 840 crore were added in open interest. Nifty call option added 8.20 lakh shares in open interest, whereas put option added 32.00 lakh shares in open interest. Yes Bank (28%), Hindustan Zinc (23%), Great Eastern Shipping (22%), Shipping Corporation of India (19%) and United Phosphorous (19%) were the top open interest gainers in the market. Mphasis (-12%), Power Finance Corporation (-12%), IDFC (-9%), and Larsen & Turbo (-7%) were the top open interest losers in the market.

Nifty Closed 4932

Nifty Support 4868/4810/4766

Nifty Resistance 4950/4978/5050

  1. Buy Aban Offshore 1195-1200 SL 1190 TGT 1222-1235
  2. Buy Nagarjuna construction 165-166 SL 163.80 TGT 167.4-169.40
  3. Buy Punj Llyod 188-189 SL 184.80 TGT 193-198
  4. Buy TCS Above 765 SL 754 TGT 784

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