2.3.2009 outlook

Markets closed the week on a Flat note after most of the indices closed within 1% of their previous close, despite lot of volatility during the week. It was one day down, 2 days up and again 1 day down during the week. Cut in Service and excise tax did bring some short lived rally in Stock Market. During the week Indices behaved as follows- Nifty (2763, +0.99%), BSE Sensex (8891, +0.55%) , Bank Nifty (3892, -1.07%) and CNX IT (2094, +1.51%). Bank Nifty and CNXIT moved in opposite direction.Overall the market breadth continues to be negative in the ratio of 3:2 with 102 Gainers and 148 Losers during last week out of the 250 High Turnover Stocks of NSE

As far as, short term charts are concerned, there is no change in the technical setup of the market as Nifty continues to be in a "Complex Inverted Head & Shoulder" having neckline resistance at 2800-2805 & bullish breakout from these levels will set a higher target of 2920-2940 which may be achieved in next 3-4 days. On the bearish side, 2 close below 2660 will open fresh bearish targets leading to 2300 & below in next 4-5 weeks. At present, both the targets are open & any strategy need to be worked out very carefully.

As for as bar reversal in Daily charts are concerned, stocks like Tata Steel, ICICI Bank, SBI, L&T, PNB, AxisBank, TCS, IVRCL, JSW Steel, HPCL etc have given "Upward Bar Reversal" while Tata Motors, JP Associates, Mhpasis, Renuka, ABB, Cipla, GE Shipping, Alstom, etc. have given "Downward Bar Reversal". Stocks like Amtek Auto, United Breweries, Mcleod, Jayshree Tea, PTC, Bharat Forge Infra have shown spurt during the day with unusually high volumes.

In nutshell, On longer term charts, Nifty is already below the support level of "Symmetrical Triangle" pattern of last 3-4 months which has set bearish target of 2300 & below which may be achieved in next few weeks provided Nifty breaks 2660 decisively.Nifty is placed in 2 different patterns i.e. an "Inverted Head & Shoulder" pattern with resistance at 2800-2805 & decisive bullish breakout may set target of 2925+ which may be achieved in next 1 week.