Market outlook for 12/05/10

Nifty fell 57.45 points or 1.11% to 5136.15 whilst Nifty May Future closed at 5132.95 discount of 3.2 points.

• FII bought in Cash (Net buy 20.19 Crore)
• FII bought in index options and index futures but sold in stock futures (Net buy 1973.75 Crore)
• DII bought in Cash (Net buy 22.49 Crore)
• US market ended flat to Negative.
• Global cues are flat to Negative.
• 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 389:919

NIFTY Technical

Current Spot: 5126.50
Pivot: 5156
3DEMA: 5134
7DEMA: 5147
20DEMA: 5198
100DEMA: 5075
RSI (7 days): 45.10
Parabolic SAR: 5255
Supports: 5107 - 5077
Resistance: 5186 - 5235
MP Values Spot: VAH - 5168, POC - 5141, VAL - 5129
MP Values Futures: VAH - 5166, POC - 5140, VAL - 5130

Over all view
Looking at yesterday’s move it seems market is in still jittery mode and on daily chart Nifty has formed “Long Black Candle” a bearish candlestick pattern. Important point to note here is that nifty has sustained crucial support of 5122 level on closing basis. Strong bull rally is possible only above 5250 levels and strong support placed at 4952 level. Traders should avoid spike on either side and still capital preservation is advisable.

Target Nifty
Buy Nifty above 5153 - 5173 - 5215 - 5242 SL - 5146
Sell Nifty below 5125 - 5109 - 5082 - 5040 SL - 5151

Swing Trade
Petronet (84.35) – Buy above 84.70 Sl 82 Tgt 90

Stock has formed “Long White Candle” with strong volume and closed on the verge of one month old downward slopping trend line. Daily momentum indicators have given positive crossover to signal line and 3 days EMA has given positive crossover to 8 days EMA more stock has given good close above 20 days EMA. Weekly RSI has also given positive crossover to signal line. Looking at all above technical parameters traders with moderate risk appetite can consider buy above 84.70 with stop loss of 82 for a Target of 90.

Stock Ideas for the Day
Reliance Industries: Buy above 1079 for targets of 1082, 1096, 1106 SL of 1071
Reliance Industries: Sell below 1062 for targets of 1059, 1050, 1035 SL of 1076
Sobha Developers: Buy above 315 for targets of 324, 335 SL of 308
Ansal Infra: Buy above 91.5 for targets of 93, 95 SL of 89.9

Positional Call
NFL: Buy above 114 for target of 125 SL 109 (One Week)
Colgate Palmolive: Sell below 735 for target of 718 SL 743 (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

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