Market outlook for 05/05/10

Nifty fell 74.25 points or 1.42% to 5148.50 whilst Nifty May Future closed at 5141.85 discount of 6.65 points.

• FII sold in Cash (Net sell 29.68 Crore)
• FII bought in index options & stock options but sold in stock futures and index futures (Net buy 234.69 Crore)
• DII sold in Cash (Net sell 438.08 Crore)
• US market ended in RED.
• Global cues are Negative.
• SGX nifty is RED as of now.
• Most Active Nifty May Call Option: 5300 and 5200.
• Most Active Nifty May Put Options: 5200 and 5100.
• Advance Decline for the day was 219:1099

NIFTY Technical

Current Spot: 5148.50
Pivot: 5178
3DEMA: 5197
7DEMA: 5231
20DEMA: 5221
100DEMA: 5074
RSI (7 days): 30.48
Parabolic SAR: 5342
Supports: 5106 - 5063
Resistance: 5221 - 5293
MP Values: VAH - 5249, POC - 5225, VAL - 5179

Over all view
Yesterday’s price movement & ADX suggest that down-trend is strengthening. Accumulation/Distribution, CCI, CMF, Force Index, GMMA, MACD, Momentum, Stochastic & PVT are pointing downward while RSI & MFI are flat to negative. RSI is reaching to over-sold region & if tomorrow some more selling comes in place (especially in opening bell or gap-down opening) then we may see 40-60 points up-move.
What is ahead?
5044 is strong support zone from where reversal could take nifty to 5115, the confluence support level which will act as RAVAN resistance level tomorrow.
If 5044 doesn't hold, nifty could fall as low as 5032 and 5000 tomorrow.
Any hope for bulls will arise only if nifty future trades above 5172 tomorrow.
In case of that happening, nifty future will move to 5197 and 5225.

Target Nifty

Stock Ideas for the Day
Reliance Industries: Buy above 1030 for targets of 1033, 1047, 1059 SL of 1022
Reliance Industries: Sell below 1016 for targets of 1013, 1002, 987 SL of 1027
Cairn India: Buy above 306 for targets of 312, 320 SL of 300
MSK Projects: Buy above 184 for targets of 188, 193 SL of 180

Positional Call
Nectar Lifesciences: Buy above 39.1 for target of 41 SL 38.5 (One Week)
Indian Hotel: Buy above 105.1 for target of 114 SL 102 (One Month)

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

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S&P Wealth Creators

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