Market outlook for 13/05/10

Nifty rose 20.50 points or 0.40% to 5156.65 whilst Nifty May Future closed at 5150.20 discount of 6.45 points.

• FII sold in Cash (Net sell 297.23 Crore)
• FII bought in index options, index futures and stock futures (Net buy 1289.52 Crore)
• DII bought in Cash (Net buy 180.42 Crore)
• US market ended flat to Positive.
• 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 516:778

NIFTY Technical

Current Spot: 5156.65
Pivot: 5143
3DEMA: 5146
7DEMA: 5150
20DEMA: 5194
100DEMA: 5069
RSI (7 days): 47.26
Parabolic SAR: 5234
Supports: 5113 - 5069
Resistance: 5187 - 5217
MP Values Spot: VAH - 5167, POC - 5151, VAL - 5131
MP Values Futures: VAH - 5165, POC - 5151, VAL - 5128

Over all view
Yesterday was a second day, where nifty has sustained important support of 5122 level. On candlestick front Nifty has formed “Small White candle” with long lower shadow which suggests some sort of buying at lower level. Daily momentum indicators are showing some sign of tiredness on either side movement. Important intraday Resistance placed in the range of 5172-5192 levels and intraday Support placed in between 5122-5098 levels. Still avoid spike on either side.

Target Nifty
Buy Nifty above 5154 - 5184 - 5221 - 5271 SL - 5135
Sell Nifty below 5130 - 5103 - 5054 - 5017 SL - 5140

Swing Trade
Tech Mahindra (734) – Long White Candle

After making high of 1130 in January end, stock was in continuous downtrend and yesterday stock has formed a “Long White Candle” with decent volume breakout, which technically suggests initial stage of trend reversal. From last four days stock is trading in accumulation phase. Daily momentum indicators like RSI, Stoch and MACDh after appearing in over sold zone given positive cross over to signal line. Looking at all above evidence traders with moderate risk appetite can consider Buy at current level of 734 with tight Stop Loss of 712 for a Target of 774.

Stock Ideas for the Day
Reliance Industries: Buy above 1086 for targets of 1091, 1102, 1116 SL of 1076
Reliance Industries: Sell below 1073 for targets of 1069, 1056, 1045 SL of 1082
Appolo Tyre: Buy above 70 for targets of 71, 72.5 SL of 69.3
Neyvile Lignite: Buy above 154 for targets of 155.5, 158.5 SL of 152.7

Positional Call
ALBK: Buy above 165 for target of 174 SL 161 (One Week)
Hexaware: Buy above 87 for target of 95 SL 84.5 (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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