Market outlook for 18/05/10

Nifty fell 33.60 points or 0.66% to 5059.90 whilst Nifty May Future closed at 5056.50 discount of 3.4 points.

• FII sold in Cash (Net sell 1224.29 Crore)
• FII sold in index futures and stock futures but bought in index options (Net sell 982.67 Crore)
• DII bought in Cash (Net buy 381.89 Crore)
• US market ended flat to Positive.
• Global cues are flat to Positive.
• SGX nifty is Negative as of now.
• Most Active Nifty May Call Option: 5100 and 5000.
• Most Active Nifty May Put Options: 4900 and 5000.
• Advance Decline for the day was 385:926

NIFTY Technical

Current Spot: 5059.90
Pivot: 5033
3DEMA: 5094
7DEMA: 5121
20DEMA: 5172
100DEMA: 5105
RSI (7 days): 35.97
Parabolic SAR: 5193
Supports: 4993 - 4926
Resistance: 5100 - 5140
MP Values Spot: VAH - 5022, POC - 4987, VAL - 4977
MP Values Futures: VAH - 5020, POC - 5005, VAL - 4975

Over all view
Yesterday Nifty has formed “Hammer” a Bullish reversal pattern on daily chart, this pattern consist small body and shadow of the same must be around 2.5 to 3 time of real body, this imbibes buying or short covering at lower level, moreover nifty has kissed and hold 200 days SMA and 50% retracement level of previous dynamic impulse wave, which will now work as strong support area on closing basis. Daily momentum indicators are generating mix signal. Nifty intraday support placed in the range of 5037-5006 levels and Intraday Resistance placed 5094-5115 level.

Target Nifty
Buy Nifty above 5062 - 5099 - 5142 - 5211 SL - 5029
Sell Nifty below 5024 - 4991 - 4922 - 4878 SL - 5034

Swing Trade
Mcleod Russel (216.60) - Bullish Engulf

After making high of 293 in late march 2010, Stock was in down trend. Yesterday stock has made “Bullish Engulf” a bullish reversal pattern with strong volume breakout more over stock has given close on the verge of one and half month old downward sloping trend line. Daily RSI and MACDh have given buy signal. Short term moving averages are also showing upward movement in stock. Looking at all above evidence traders with moderate risk appetite can consider Buy above 219 with tight stop loss of 208 for a Target of 237.

Stock Ideas for the Day
Reliance Industries: Buy above 1025 for targets of 1029, 1043, 1054 SL of 1018
Reliance Industries: Sell below 1011 for targets of 1008, 997, 982 SL of 1023
Karnataka Bank: Buy above 142 for target of 145, 149 SL 138.5
PFC: Buy above 295 for target of 298, 304 SL 289

Positional Call
Hitachi Home: Buy above 307 for target of 345 SL 288 (One Week)
IBRealestate: Buy above 169 for target of 178 SL 163 (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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