Market outlook for 11/05/10

Nifty jumped 175.55 points or 3.50% to 5193.60 whilst Nifty May Future closed at 5207 (prov.) premium of 13.4 points.

• FII bought in Cash (Net buy 263.96 Crore)
• FII bought in index futures and stock futures but sold in index options (Net buy 2680.56 Crore)
• DII bought in Cash (Net buy 30.25 Crore)
• US market ended in GREEN.
• Global cues are Positive.
• SGX nifty is Positive as of now.
• Most Active Nifty May Call Option: 5300 and 5200.
• Most Active Nifty May Put Options: 5000 and 5100.
• Advance Decline for the day was 1154:167

NIFTY Technical

Current Spot: 5193.60
Pivot: 5138
3DEMA: 5133
7DEMA: 5151
20DEMA: 5204
100DEMA: 5052
RSI (7 days): 51.11
Parabolic SAR: 5279
Supports: 5074 - 4953
Resistance: 5258 – 5323
MP Values Spot: VAH - 5202, POC - 5106, VAL - 5092
MP Values Futures: VAH - 5207, POC - 5165, VAL - 5118

Over all view

• Huge bullish candle retracing 50% of fall from 5400 on good breadth and average volumes.
• Daily oscillators moving up from oversold area and MACD has shown an uptick.
• Half hourly charts show breakout from downward sloping channel giving a target of 5276 and above the green trendline once again.
• Half hourly oscillators are strong and have reached the overbought zone.
• The 5, 10, 20 & 50 EMA’s are now bullishly aligned on half hourly charts.

I wrote yesterday that intraday charts though are showing positive divergence and very minor bullish patterns which could develop into a small bounce. What seemed like a small bounce in the offing, turned out to be huge explosion of 175 points, 50% of the fall was retraced in one day!
The Nifty needs to trade above 5213 tomorrow in order to continue the bullishness. Resistance is at 5241 the 61.8% fibo level. The fall to 4984 consumed 22 days. A faster retracement to 5400 would be bullish.
The trendline from 3918 is now very significant support. Till this line holds the Nifty may move higher. Support from this trendline is at 4994.

Target Nifty
Buy Nifty above 5204 - 5243 - 5289 - 5371 SL - 5160
Sell Nifty below 5155 - 5120 - 5037 - 4992 SL - 5165

Swing Trade

SCI (166.80)
On daily chart stock has given “symmetrical triangle“ breakout and formed “white opening Marubozu” with rising volume. 3 days EMA has given positive crossover to 8 days EMA and daily momentum indicators are making higher highs, suggests strong up move is on the card. Looking at all above technical parameters traders with moderate risk appetite can consider Buy above 168 with tight stop loss of 164 (closing basis) for a Target of 176.

Stock Ideas for the Day
Reliance Industries: Buy above 1082 for targets of 1092, 1106, 1134 SL of 1064
Reliance Industries: Sell below 1062 for targets of 1055, 1028, 1013 SL of 1070
Cairn: Buy above 303.1 for targets of 306.4, 312.7 SL of 300.1
Hindalco: Buy above 176.3 for targets of 179.8, 184.1 SL of 171.9

Positional Call
Biocon: Buy above 290 for target of 305 SL 285 (One Week)
JP Associate: Buy above 135 for targets of 147 SL of 130.9 (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

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