Market outlook for 04/05/10

Nifty fell 55.25 points or 1.05% to 5222.75 whilst Nifty May Future closed at 5225.70 (prov.) premium of 2.95 points.

• FII sold in Cash (Net sell 387.05 Crore)
• FII bought in index options & stock options but sold in stock futures and index futures (Net buy 438.81 Crore)
• DII sold in Cash (Net sell 107.01 Crore)
• US market ended in Green.
• Global cues are flat to Positive.
• SGX nifty is flat as of now.
• Most Active May Nifty Call Option: 5400 and 5300.
• Most Active May Nifty Put Options: 5100 and 5200.
• Advance Decline for the day was 426:881

NIFTY Technical

Current Spot: 5222.75
Pivot: 5237
3DEMA: 5245
7DEMA: 5258
20DEMA: 5262
RSI (7 days): 40.45
Parabolic SAR: 5178
Supports: 5196 - 5169
Resistance: 5264 - 5305
MP Values: VAH - 5245, POC - 5223, VAL - 5216

Over all view
Nifty daily chart has formed “Black Opening Marubozu” a bearish candlestick pattern and forming good strong support near 50 days EMA since last four trading days and now which is currently placed at 5200 levels. Daily as well as weekly momentum indicators are showing weakness in chart. More over yesterday was first day where Nifty experienced “Dead Cross Over” on moving average front. Strong resistance placed in the range of 5290-5310 levels. Over all scenario remains cautious and capital preservation is more advisable.

Target Nifty
Buy Nifty above 5239 - 5251 - 5364 - 5380 SL - 5226
Sell Nifty below 5215 - 5204 - 5193 - 5180 SL - 5229

Swing Trade

Essar Oil (142.10)
Stock has formed “Long White Candle” after two “DOJI” days with strong volume breakout on daily chart. Daily momentum indicators have given positive crossover to signal line. Weekly RSI has also given positive cross over to signal line. More over stock has given good close above 20 days EMA. Looking at all above technical parameters traders with moderate risk appetite can consider Buy above 142.70 with tight stop loss of 140.50 for a Target of 148-150.

Stock Ideas for the Day
Reliance Industries: Buy above 1030 for targets of 1033, 1037, 1043 SL of 1022
Reliance Industries: Sell below 1019 for targets of 1016, 1013, 1005 SL of 1027
EKC: Buy above 133 for targets of 137, 142 SL of 129
IBReal Estate: Buy above 175 for targets of 178, 182 SL of 172

Positional Call
Geodisc: Buy above 129 for target of 139 SL 123.5 (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

Call 09831497250 or mail us @ S&P Wealth Creators with your Name and Mobile No. for subscription offer of intraday calls during Market hours.