Pre-Open Market Outlook(03-03-2011)

Indian markets lost all intraday gains and closed with 'Bearish Gravestone Doji' on budget day but only bullish moves were predicted in Pre-Open and Mid-session outlooks lat Monday and Indian markets  markets closed with strong gains and closed above crucial resistance at 5520. Following positive moves are visible in EOD charts:-

1- Nifty crossed and closed above upper line of falling channel.
2- Nifty got support near strong support at 5210.
3- Higher bottom formationwith intraday consolidation patterns last Friday.
4- MACD moved up after getting support at average line in MACD oscillator

Bullish Signals in  EOD chart:-

(Just click on chart for its enlarged view)

Long term trend is down,short term is up,intermediate term is side ways,trend decider is 5520 and upmove confirmation point is sustaining above 200-Day EMA(today at 5603). Rally started from 5177 showed bullish signals and those are shown in above chart but sustainibility above 5520 is key and will give confirmation to next up moves in Indian markets.

Crude price hike and Libyan internal disturbance are immediate concern for global stock markets therefore all correctly sharply yesterday,Indian markets were closed and will react through Red zone trading today. Indian markets showed posive mood after Budget last Monday will react on above points and expected petroleum price hike today.

It will be fair to watch intraday patterns today and then decide and tell for next Indian markets otherwise will be guessing only.

Today expected first range is 5435-5470 and break out of this range will give next move confirmation. Up move confirmation point is 5520 and be cautious below 5435.