My Market View Dt: 04-Feb-2010

As per technical analysis:

Indian markets today will be mostly range bound with negative Bias.

Overall Bias : Negative till we close above 5300 on NIFTY.
Immediate Bias: Taking Support.

Immediate Resistance for the month: 5030+/-10 pts on NIFTY.
Immediate Support for the month: 4770+/-10 pts on NIFTY.

To stay in +ve Bias, market should close above 4830 today.

+ves for market:
1. FIIs bought yesterday. DIIs did not pariticipate that much.

FII Net is 396 crores. For last 10 trading sessions FIIs were Net sellers. Yesterday it turned +ve.
DII Net is 0.45 crores. For last 10 trading sessions DIIs were Net Buyers. Yesterday No participation from DIIs we can say.
2. Bullish engulfing formed.
3. We are on upward tren line in short term(Support : 4830). We are also on upward trendline for medium term (Support: 4770).
4. The results are generally okey.

-ves for market:
1. Most of the technical indicators are giving support for downward movement.
2. Most of the stocks are still below their pivot values indicating selling pressure.

As per Fundamental Analysis:
- Most of the stock have moved to higher valuations.
- There are still many mid caps available at 2007 valuations.
- As per my understanding Results and ecenomic reports are positive.

Please note that Market is Pre-Indicator for the economic cycle. Meaning, Market most of the times will absorb the news much before the news becomes a reality.