>Daily Market & Technical Outlook (ICICI Direct)

Key points

■ Market outlook — Open positive on strong global cues
■ Positive — FIIs buying, Rupee expected to gain
■ Negative – MFs Selling

Market outlook

■ Indian markets are likely to open positive on strong global cues. Asian markets were trading higher in the morning, as hopes rise that the global recession is abating. US stocks rose for the second day as investors saw signs of increasing consumer demand, pushing retailers and technology stocks higher. Rupee is expected to gain today on the back of positive trading Asian markets

■ The annual inflation rate fell to 0.27 % for the week ended March 14, compared with 8.02 % in the corresponding week last year and 0.44 % in the previous week

■ The Sensex has supports at 9900 and 9740 and resistances at 10188 and 10470. The Nifty has supports at 3025 and 2980 and resistances at 3110 and 3140

■ Asian stocks climbed as higher commodity prices and better-thanestimated earnings at US companies boosted optimism the global recession is abating. Nikkei advanced 83.2 points, or 1.0%, to trade at 8,719.6. Hang Seng gained 46.8 points, to trade at 14,106.3

■ US stocks rallied for a second straight day on Thursday, taking the Nasdaq back into positive territory for the year-to-date, on increasing optimism that the economy's worst days are behind after the government reported data that was less dire than expected. The Dow Jones jumped 174.75 points, or 2.25 %, to 7,924.56. The S&P 500 spiked 18.98 points, or 2.33 %, to 832.86. The Nasdaq surged 58.05 points, or 3.80 %, to 1,587.00

■ Stocks in news: Shipping Corporation, Tata Tea, Sasken communication, Reliance Capital, HCL Tech, TVS Motors, DLF

Technical Outlook

Sensex: We said, "looks positive above 9706 ... Things can turn volatile on settlement day, though trend remains positive within rising channel." Index opened above 9706 with a gap. Initial volatility held the level, after which it surged further to upper channel, to end 3.8% higher. A/D ratio improved to 4:1.

The action formed a strong bull candle with a gap-up area, at 9706-9740, below its low. It was a strong action which closed at the psychological mark of 10K. Day's high at 10061 could be crucial today. Failure to trade above it could see lackluster trading, though trend remains positive as long as the gap-up area holds.

To see full report: OPENING BELL 270309