Market outlook for 17/05/10

Nifty fell 85.40 points or 1.65% to 5093.50 whilst Nifty May Future closed at 5083.65 discount of 9.85 points.

• FII sold in Cash (Net sell 381.42 Crore)
• FII sold in index options, index futures and stock futures (Net sell 2047.39 Crore)
• DII bought in Cash (Net buy 164.64 Crore)
• US market ended in RED.
• Global cues are flat to Negative.
• SGX nifty is Negative as of now.
• Most Active Nifty May Call Option: 5300 and 5200.
• Most Active Nifty May Put Options: 5100 and 5200.
• Advance Decline for the day was 255:1054.

NIFTY Technical

Current Spot: 5093.50
Pivot: 5119
3DEMA: 5128
7DEMA: 5141
20DEMA: 5183
100DEMA: 5071
RSI (7 days): 39.56
Parabolic SAR: 5213
Supports: 5045 - 4997
Resistance: 5167 - 5241
MP Values Spot: VAH - 5193, POC - 5176, VAL - 5131
MP Values Futures: VAH - 5192, POC - 5171, VAL - 5136

Over all view
Last week Nifty has formed “High Wave Pattern” on weekly chart which suggests there is supply at higher level but we would like to point out here is that last week trend was backed by weak global cues so we refer last week all candles were news driven candles rather than technical.
On daily chart last week nifty consist of two down days and three up days candles but closed near lower band of high and low, moreover Nifty has also broken important crucial support of 5122 level which is 62% retracement level of previous dynamic impulse wave. Daily momentum indicators have also given negative crossover to signal line. Over all capital preservation is more advisable as market is more news driven at this point.
Next week Important support range is between 5037 - 4952 levels, 200 days SMA placed at 4982, and important Resistance placed in between 5134 - 5156.

Target Nifty
Buy Nifty above 5118 - 5168 - 5256 - 5312 SL - 5112
Sell Nifty below 5076 - 5030 - 4973 - 4886 SL - 5117

Swing Trade
Shree Renuka Sugars (Buy)

Stock is on correction mode from last five months; finally it’s showing sign of accumulation at current levels. Technical indicator are also suggesting buy in this counter. MACD is about to give positive divergence while stochastic oscillator and RSI are on the verge of entering into positive territory from oversold one. Buy at CMP of 54.60 for target of 60 SL 51.

Stock Ideas for the Day
Reliance Industries: Buy above 1055 for targets of 1062, 1083, 1098 SL of 1047
Reliance Industries: Sell below 1038 for targets of 1031, 1016, 995 SL of 1052
Bank of Baroda: Sell below 683 for target of 676, 667 SL 692
SCI: Sell below 164 for target of 162, 159 SL 165.5

Positional Call
Sesa Goa: Sell below 373 for target of 345 SL 387 (One Week)
Visa Steel: Buy above 40 for target of 45 SL 39 (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.