Market outlook for 07/05/10

Nifty fell 34.05 points or 0.66% to 5090.85 whilst Nifty May Future closed at 5087.15 discount of 3.7 points.

• FII sold in Cash (Net sell 937.75 Crore)
• FII sold big in index futures but bought in index options and stock futures (Net sell 535.18 Crore)
• DII bought in Cash (Net buy 379.96 Crore)
• US market ended 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: 5000 and 5100.
• Advance Decline for the day was 588:714

NIFTY Technical

Current Spot: 5090.85
Pivot: 5085
3DEMA: 5126
7DEMA: 5176
20DEMA: 5225
100DEMA: 5050
RSI (7 days): 24.48
Parabolic SAR: 5325
Supports: 5044 - 4998
Resistance: 5131 - 5171
MP Values: VAH - 5116, POC - 5092, VAL - 5075

Over all view
Yesterday Nifty has again formed “Hammer” and most important point to note here is that it managed to close above previous hammer’s low and this has intact implication of this pattern, although daily momentum indicators are still showing sign of weakness in chart. Immediate support placed at 50% retracement level of previous dynamic impulse wave which is at 5037 level and immediate resistance placed in the range of 5122-5145 levels.

Target Nifty
Buy Nifty above 5091 - 5124 - 5163 - 5213 SL - 5077
Sell Nifty below 5068 - 5039 - 4989 - 4950 SL - 5078

Swing Trade

Ranbaxy (461)
Stock has formed “White Opening Marubozu” with strong volume breakout on daily chart. 3 days EMA has given Positive crossover to 8 Days EMA, more over daily momentum indicators like RSI, Stochastic and MACDh entered in bullish zone. Weekly RSI also showing strength with upward movement and with rising volume. Looking at all above technical parameters traders with moderate risk appetite can consider Buy above 461 Stop loss of 452 for a Target of 486.

Stock Ideas for the Day
Reliance Industries: Buy above 1017 for targets of 1021, 1028, 1036 SL of 1009
Reliance Industries: Sell below 1003 for targets of 1000, 995, 983 SL of 1014

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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