Market outlook for 26/04/10

Buying interest across some sectoral indices has made the market to end the volatile trade on a positive note. The key benchmark indices gained for the 4th consecutive day on higher European stocks and gains in U.S index futures. Despite the weak cues from the Asian peers, the domestic market opened the day's trade with optimistic note on the back of better Q-4 results. Further, the sentiments were boosted by the declaration of bonus issue of shares from the IT major-Wipro. However, the market moved in a narrow range ahead of the announcement by the Indian Metrological Department regarding the forecast for annual monsoon. Later, in mid-morning trade, following a god set of numbers from technology companies. Moreover, the positive European markets were seen soaring after the first quarter result of Volvo which beat the expectations and made the domestic market to remain firm. The key benchmark indices continued to move northwards in a volatile trade and closed the session with positive note. The overall market breadth was positive, as 9 out of the 13 indices ended in green. Among the sectoral indices Bankex, CG and Oil&Gas stocks were the major gainers.
Nifty closed the day at 5304.10 up by 34.75 points. Nifty April future closed at 5305.00, premium of 0.9 points.

• FII bought in Cash (Net buy 339.30 Crore)
• FII bought in stock futures and index futures but sold in index options (Net buy 358.56 Crore)
• DII bought in Cash (Net buy 29.09 Crore)
• US market ended in Green.
• Global cues are flat to Positive.
• SGX nifty is Positive as of now.
• Most Active April Nifty Call Option: 5400 and 5300.
• Most Active March Nifty Put Options: 5200 and 5300.
• Advance Decline for the day was 598:713

NIFTY Technical

Current Spot: 5304.10
Pivot: 5295
3DEMA: 5280
7DEMA: 5273
20DEMA: 5262
RSI (7 days): 57.77
Parabolic SAR: 5337
Supports: 5279 - 5253
Resistance: 5320 - 5336

Over all view
Friday’s close was above all short term DEMA’s which is bullish, and barring the 5 and 10 DEMA’s all are bullishly aligned. Oscillators are showing strength once again, moving up above the 50 level, though MACD is in sell but shows an uptick. 5264 is good support coinciding with the 20 DEMA at 5262.
Support at 5265-5160 and Resistance at 5340-5350-5400. Place stop loss on short/long positions accordingly.

Target Nifty
Buy Nifty above 5309 - 5322 - 5342 - 5372 SL - 5292
Sell Nifty below 5287 - 5278 - 5248 - 5228 SL - 5298

Stock Ideas for the Day
Reliance Industries: Buy above 1091 for targets of 1094, 1101, 1109 SL of 1085
Reliance Industries: Sell below 1083 for targets of 1080, 1075, 1067 SL of 1090
Nirma Ltd.: Buy above 180.40 for targets of 183, 188 SL of 176
Andhra Bank: Buy above 119 for targets of 122, 125 SL of 116

Positional Call
Indian Overseas Bank: Buy above 98 for target of 107 SL 96 (One Month)
Allahabad Bank: Buy above 163 for target of 171 SL 159 (One Week)

Use strict STOP LOSS in each and every trade in this kind of volatile market and Trade at your own risk.

Thanks and Regards

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