For MARCH 2010 Nifty sensex index technical analysis And Impact of Budget & Put Call Open interest

For MARCH 2010 Nifty sensex index  technical analysis  And Impact of Budget & Put Call Open interest

First Check the technical Analysis Charts

Sensex

Supports and Resistances on basis of PIVOT POINT ANALYSIS

NIFTY CMP : 4922.3
30 DMA : 4,916.88
The Close Price has crossed the 30 Days Simple Moving Avg. from Below

its bullish Sign

150 MOVINGAVG : 4,898.7
The Close Price has crossed the 150 Days Simple Moving Avg. from BELOW

its a +VE BreakOut.

RELATIVE STRENGTH INDEX  RSI (14 ):68.47

10 DAYS STOCHASTIC OSCILLATOR  :   66.51

14 DAYS  WILLIAM %R INDICATOR:-22.02

MONEY FLOW INDEX (14 DAYS ):51.15

(12 DAYS ) RATE OF CHANGE:3.47

This was all mandatory technical analysis  Now lets  see Where  Nifty Sensex  Wil Go in March.

For Nifty Immediate  Support is at 4800  .So you may Consider 4725-4775 area as great Support

And 5050 is the resistance area

In Sensex  16000 area is providing good support

16600 is providing resistance

Investors

Remember level to watch in Nifty is 4936

Corresponding level for Sensex is  16566

Whenever nifty Sensex Close Above these levels,Take Bullish Long positions .

Stop loss should be 4850 in Nifty and 16200 levels in SENSEX

RISK Reward RATIO is in Favour of BULLS Above THESE LEVELS

Impact of Budget

The Budget is going to boost markets irrespective of its shortcomings
because

More Money in hands of Consumers to buy goods after changing tax Slabs
Showed Will to Control Fiscal Deficit
More Money Flow in Agri,infra and Education Sectors

An Investor/trader Do not have to think About all the impacts.Those have been factored in the price of NIFTY Sensex Friday itself.Focus on Price action and stop losses only