Market outlook for 03/05/10

Nifty was up by 23.85 points or 0.45% to 5278 whilst Nifty May Future closed at 5262.80, discount of 15.2 points.

• FII bought in Cash (Net buy 355.55 Crore)
• FII bought in index options & stock futures but sold small in stock options and index futures (Net buy 1683.12 Crore)
• DII bought in Cash (Net buy 217.61 Crore)
• US market ended in RED.
• Global cues are flat to Negative.
• SGX nifty is Negative as of now.
• Most Active May Nifty Call Option: 5400 and 5300.
• Most Active May Nifty Put Options: 5200 and 5300.
• Advance Decline for the day was 779:525

NIFTY Technical

Current Spot: 5278.00
Pivot: 5277
3DEMA: 5268
7DEMA: 5270
20DEMA: 5266
RSI (7 days): 51.11
Parabolic SAR: 5175
Supports: 5259 - 5239
Resistance: 5296 - 5314
MP Values: VAH - 5289, POC - 5281, VAL - 5273

Over all view

• Bullish candles since the last two days, still not been able to retrace completely the fall on the 28th April.
• Oscillators are weak and moving down making lower highs and lower lows.
• 5 EMA is below the 10 EMA showing waning bullish sentiment.
• 50 DEMA at 5199.
• Range contracting from 5400-5160 to 5342-5202 implying extreme indecisiveness. Expect blowout effect when these ranges are broken.

The medium term charts though bullish have been started showing bearish indications, which should put longs on alert. The cooling effect seen by formation of the equilateral triangle will sooner or later give way to a sharp move, the possibilities of it being on the downside is more.
Keep positions, long or short, hedged. 5200 should be the stop loss for longs and 5320 for the shorts.

Target Nifty
Buy Nifty above 5272 - 5282 - 5304 - 5320 SL - 5266
Sell Nifty below 5255 - 5249 - 5233 - 5211 SL - 5271

Stock Ideas for the Day
Reliance Industries: Buy above 1042 for targets of 1045, 1052, 1058 SL of 1034
Reliance Industries: Sell below 1029 for targets of 1026, 1022, 1012 SL of 1040
HindPetro: Buy above 317 for targets of 323, 332 SL of 309
ICSA India: Buy above 140 for targets of 146, 153 SL of 134

Positional Call
UniPhos: Buy above 171 for target of 186 SL 163.8 (One Week)
Ashok Leyland: Buy above 60.5 for target of 68 SL 58.5 (One Month)

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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