Market outlook for 29/04/10

The key benchmark indices ended the volatile session on negative note on the back of the selling pressure that emerged across the bourses during the final hours. The key benchmark indices lost grounds for the 2nd consecutive day on lower global stocks. The domestic market opened the day's trade with negative note on the back of weak global cues, after Standard & Poor's cut Greece's rating to junk and lowered Portugal two-notches. However, Greece has already admitted it can't pay debts due shortly and has asked for a bailout from European neighbors and the International Monetary Fund (IMF). However, the key benchmark indices were continuously traded in negative territory, with the F&O expiry due on Thursday 29th April 2010. The market breadth, indicating the overall health of the market was negative as all the 13 sectoral indices closed in red. On the sectoral front - Realty, Oil&Gas, Metal and CD stocks edged lower.
Nifty fell 92.90 points or 1.75% to 5215.45 whilst Nifty April Future closed at 5223.75 (prov.) premium of 8.3 points.

• FII sold in Cash (Net sell 131.13 Crore)
• FII sold in index futures & stock futures but bought small in stock options and index options (Net sell 993.79 Crore)
• DII bought in Cash (Net buy 324.10 Crore)
• US market ended flat to Positive.
• Global cues are flat to Negative.
• SGX nifty is just Positive as of now.
• Most Active April Nifty Call Option: 5300 and 5200.
• Most Active March Nifty Put Options: 5200 and 5300.
• Advance Decline for the day was 199:1120

NIFTY Technical

Current Spot: 5215.45
Pivot: 5230
3DEMA: 5260
7DEMA: 5272
20DEMA: 5266
RSI (7 days): 36.25
Parabolic SAR: 5168
Supports: 5188 - 5161
Resistance: 5258 - 5300
MP Values: VAH - 5272, POC - 5260, VAL - 5228

Over all view
Yesterday Nifty made a “Big Red Candle” pattern. As per technical indicators, ADX is almost flat and most of the other indicators are negative, but RSI reaching to over-sold region.
Nifty took support at 5200, which, if breaks tomorrow, then we may see 5150 tomorrow itself. If this support does not break tomorrow, then Nifty may touch 5250-5260 levels. VERY IMPORTANT, tomorrow is expiry day so Nifty will be very volatile.

Target Nifty
Buy Nifty above 5234 - 5260 - 5307 - 5339 SL - 5228
Sell Nifty below 5209 - 5187 - 5154 - 5108 SL - 5233

Stock Ideas for the Day
Reliance Industries: Buy above 1033 for targets of 1041, 1067, 1083 SL of 1025
Reliance Industries: Sell below 1012 for targets of 1004, 988, 962 SL of 1030
Bata India: Buy above 296 for targets of 302, 310 SL of 288
RNRL: Buy above 67 for targets of 69, 72 SL of 65

Positional Call
S Kumars: Buy above 72 for target of 79 SL 70.4 (One Week)
Excel Infoways: Buy above 62.5 for target of 67.5 SL 61.3 (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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