Market outlook for 06/05/10

Nifty fell 23.60 points or 0.46% to 5124.90 whilst Nifty May Future closed at 5120.15 discount of 4.75 points.

• FII sold in Cash (Net sell 1589.68 Crore)
• FII bought big in index options but sold in stock options and index futures (Net buy 1630.19 Crore)
• DII bought in Cash (Net buy 691.15 Crore)
• US market ended flat to Negative.
• Global cues are flat to Negative.
• SGX nifty is Negative as of now.
• Most Active Nifty May Call Option: 5200 and 5100.
• Most Active Nifty May Put Options: 4900 and 5000.
• Advance Decline for the day was 459:838

NIFTY Technical

Current Spot: 5124.90
Pivot: 5106
3DEMA: 5161
7DEMA: 5204
20DEMA: 5239
100DEMA: 5037
RSI (7 days): 27.94
Parabolic SAR: 5337
Supports: 5075 - 5025
Resistance: 5156 - 5188
MP Values: VAH - 5116, POC - 5092, VAL - 5076

Over all view
Yesterday Nifty saw gap down opening but in intraday, chart has formed higher highs and higher lows which suggests some sign of strength in market at down level. Daily chart has formed “Hammer” a bullish candlestick pattern and reliability of this pattern is high, if next day close is above high of hammer. On other side daily momentum indicators are showing some sign of weakness. Over all scenario slightly favor bulls and trader should avoid fresh shorts as long as Nifty is above 5100 level on closing basis, Next immediate resistance placed in the range of 5168-5200 levels.

Target Nifty
Buy Nifty above 5124 - 5149 - 5179 - 5229 SL - 5099
Sell Nifty below 5094 - 5074 - 5025 - 4994 SL - 5105

Swing Trade

Kirloskar Oil Eng (175.20)
On daily chart Stock has formed two bullish patterns. On candlestick front “Three Outside Up” a bullish candlestick pattern and on western technique stock has formed “Pennant” a bullish continuation pattern. Daily momentum indicators are featuring in bullish zone and favor up move on chart. 3 days EMA has given positive cross over to 8 days EMA. Looking at all above technical evidence traders with moderate risk appetite can consider Buy above 176 with tight stop loss of 171 for a Target of 188.

Stock Ideas for the Day
Reliance Industries: Buy above 1023 for targets of 1027, 1034, 1046 SL of 1013
Reliance Industries: Sell below 1011 for targets of 1006, 998, 990 SL of 1018
Godrej Consumer: Buy above 310 for targets of 320, 333 SL of 296
UCO Bank: Buy above 75 for targets of 76.5, 78.5 SL of 72.5

Positional Call
S Kumars: Buy above 78 for target of 85 SL 75 (One Week)
SesaGoa: Buy above 400 for target of 435 SL 390 (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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