5.3.2009 Outlook

"Nifty has confirmed the bearish breakout below 2880 & now it is under threat for target of 2300 & below, however there are number of important supports which may need to be violated before reaching the target of 2300. On the bullish side, Nifty has no. of opening gaps to be filled but unless Nifty closes above 2805, the trend will be considered down only.. ". Nifty opened on a flat note on positive cues from global markets & remained in a range of about 40 points throughout the day. It did drift during the session by nearly 3 times, however it could not break the level of 2610 which is proving to be a reasonably good support. Nifty rallied during the day to touch an intra day high of 2665 before closing at 2645, about 22 points above the previous close.As far as, short term charts are concerned, Nifty is trading in a oversold zone & further recovery to 2690-2695 is not ruled out. However, Nifty may face strong resistance at these levels & likely to start its downward journey from these levels. On the bullish side, Nifty close above 2800 may negate the downward bearish targets temporarily. Many PSUs bank stocks including SBI, Syndicate Bank, Andhra Bank, BOI, BOB, IFCI, IDBI, Rel. Capital, Axis bank are extremely oversold & ripe for technical recovery anytime.As for as bar reversal in Daily charts are concerned, stocks like BSE Sensex, Reliance, Infosys, Tata Power, TTML, Sun Pharma, Tata Motors, Mundra Port, GAIL, Balrampur have given "Upward Bar Reversal" while Axis Bank, Indraprastha, Amtek, NDTV, Bata India, GTL Infra, IRB Infra etc. have given "Downward Bar Reversal". Stocks like Eveready, SAIL, Renuka Sugar, Gateway, Astra and Cipla have shown spurt during the day with unusually high volumes.Sector wise, most of the steel, metal, sugar, infrastrructure, refinery, power, select banking, IT & pharma stocks were among the top gainers of the day where as stocks like Rolta, IOB, HDFC Ltd., Satyam, etc. were among the top losers of the day. As far as, A/D data is concerned though the index was positive, the A/D data was in favor of bears in the ratio of 7:5 with 700 declines & 481 advances during the day.
In nutshell, Nifty is still in oversold zones & further recovery to 2680-2720 is indicated on the charts. On the other hand, move below 2610 may accelerate the decline towards 2500 & below. The best strategy should to concentrate on stocks which have given bullish breakout in hourly charts & there targets are not yet achieved.