Market outlook for 28/04/10

The key benchmark indices remained negative in the afternoon trade on back of weak global market. The market sentiments were further hampered by the negative European market which is trading in red following concerns about potential delays in financial aid for Greece as well as further monetary tightening in China. Moreover, investors remained cautious ahead of the expiry of the near-month April 2010 derivatives contracts on Thursday, 29th April 2010. On the sectoral front - Bankex, Realty, Metal and CD stocks are witnessing most of the selling pressure.
Nifty closed the day at 5308.35 down by 14.10 points. Nifty April future closed at 5309.05, premium of 0.70 points.

• FII sold in Cash (Net sell 164.29 Crore)
• FII bought in stock options and index options but sold in stock futures and index futures (Net buy 107.78 Crore)
• DII bought in Cash (Net buy 1.09 Crore)
• US market ended in deep RED.
• Global cues are flat to Negative.
• SGX nifty is Negative as of now (-85 points at 5222).
• Most Active April Nifty Call Option: 5400 and 5300.
• Most Active March Nifty Put Options: 5200 and 5300.
• Advance Decline for the day was 501:792

NIFTY Technical

Current Spot: 5308.35
Pivot: 5314
3DEMA: 5305
7DEMA: 5291
20DEMA: 5272
RSI (7 days): 56.99
Parabolic SAR: 5165
Supports: 5297 - 5286
Resistance: 5325 - 5342
MP Values: VAH - 5321, POC - 5316, VAL - 5306

Over all view
After five day of up days (Green close) finally nifty closed in red with “Bearish Harami Candle” (A bearish harami may be formed from a combination of a large white or black candlestick and a smaller white or black candlestick. The smaller the second candlestick, the more likely the reversal. It is thought to be a strong sign that a trend is ending when a large white candle stick is followed by a small black candlestick) pattern suggests uncertainty at higher levels. Daily momentum indicators are showing tiredness especially stochastic is showing weakness after appearing in over bought zone. Strong up move is possible only above demand line breakout adjoining from early February 2010 which is placed at 5355 level. Immediate major support placed at 5270 and 5220 levels. Over all scenario is cautious and capital preservation is more advisable.

Target Nifty
Buy Nifty above 5318 - 5326 - 5346 - 5361 SL - 5311
Sell Nifty below 5301 - 5297 - 5282 - 5262 SL - 5317

Stock Ideas for the Day
Reliance Industries: Buy above 1067 for targets of 1069, 1072, 1078 SL of 1059
Reliance Industries: Sell below 1056 for targets of 1054, 1051, 1044 SL of 1064
Grasim.: Sell below 2816 for targets of 2800, 2785 SL of 2830
Zeel: Sell below 304 for targets of 300, 295 SL of 309

Positional Call
Nagarjuna Fertilizers: Buy above 33.2 for target of 37 SL 32 (One Week)
SCI: Buy above 164 for target of 171 SL 161 (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

S&P Wealth Creators

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