>DAILY MARKET & TECHNICAL OUTLOOK (ICICI Direct)

Market outlook

■ Indian markets are likely to open flat, taking cues from global markets. Asian markets were trading higher in the morning as unexpectedly strong US housing and durable goods data is raising hopes. Crude Oil prices fell on Wednesday as data showed US crude inventories rose more than expected to the highest level in 16 years as petroleum demand dropped. Rupee is expected to rise supported by higher Asian equities and a rise in other regional currencies, but demand for dollars for import payments will limit the gains.

■ Inflation for the week ended March 14th is expected at 0.13% against 0.44% for the previous week

■ The Sensex has supports at 9490 and 9380 and resistances at 9730 and 9840. The Nifty has supports at 2915 and 2880 and resistances at 3020 and 3050

■ Asian stocks rose, lifting the region’s benchmark index to a two-month high, as better-than- expected US economic reports fuelled optimism that global growth is responding to government stimulus measures. Nikkei advanced 43.1 points, or 0.5%, to trade at 8,523.1. Hang Seng gained 350.5 points, or 2.6%, to trade at 13,972.6

■ US stocks rose in a late rally on Wednesday as unexpectedly strong housing and durable goods data fuelled hopes the economy is finally on the mend, offsetting concerns the United States may struggle to fund plans to pull the economy out of recession. The Dow Jones gained 89.84 points, or 1.17 %, to 7,749.81. The S&P 500 rose 7.76 points, or 0.96 %, to 813.88. The Nasdaq added 12.43 points, or 0.82 %, to 1,528.95

■ Stocks in news: GAIL, Bank of Baroda, Dishman Pharma, Fortis Healthcare, Tata Power, Ranbaxy

Technical Outlook

Sensex: We said, "bear candle with upper shadow indicates hesitation ... But it doesn't indicate breakdown ... Holding 9400 can encourage positive efforts ..." Index held 9400 to encourage positive efforts, and closed 2% higher. Realty Index outperformed with 6.3% gain. A/D ratio also turned positive at 2:1.

A day prior to settlement, action formed an Engulfing Line Bull candle, which, however, is re-testing resistance at the upper Green channel and previous high. On the Settlement day, looks positive above 9706 with caution at higher levels. Things can turn volatile on settlement day, though trend remains positive within rising channel.

To see full report: OPENING BELL 260309