Market outlook for 19/05/10

Nifty was up by 6.30 points or 0.12% to 5066.20 whilst Nifty May Future closed at 5063.40 discount of 2.8 points.

• FII sold in Cash (Net sell 439.70 Crore)
• FII bought in index futures and stock futures but sold in index options (Net buy 701.60 Crore)
• DII bought in Cash (Net buy 326.61 Crore)
• US market ended flat to Negaitive.
• Global cues are flat to Positive.
• SGX nifty is Negative as of now.
• Most Active Nifty May Call Option: 5200 and 5100.
• Most Active Nifty May Put Options: 5000 and 5100.
• Advance Decline for the day was 733:563

NIFTY Technical

Current Spot: 5066.20
Pivot: 5065
3DEMA: 5080
7DEMA: 5107
20DEMA: 5161
100DEMA: 5096
RSI (7 days): 37.22
Parabolic SAR: 5170
Supports: 5025 - 4984
Resistance: 5106 - 5146
MP Values Spot: VAH - 5078, POC - 5065, VAL - 5035
MP Values Futures: VAH - 5088, POC - 5066, VAL - 5044

Over all view
Nifty daily chart has formed “Long Legged Doji” an indecisive candlestick pattern but this appeared after “Hammer” so this will favor bull as long as hammer low is sustain, which is placed at 4966 level. Daily momentum indicators are generating mix signals. Intraday support placed at same level of yesterday which is in between 5037-5006 levels and Resistance placed in between 5095-5122 levels. Buying on dips strategy works well in this type of market as Nifty is trading around 50% retracement level of previous dynamic impulse wave.

Target Nifty
Buy Nifty above 5067 - 5105 - 5150 - 5195 SL - 5060
Sell Nifty below 5055 - 5021 - 4976 - 4931 SL - 5066

Swing Trade
Ambuja Cement (107.85) - Meeting Line + Long White candle

After making “Meeting Line” a bullish candlestick pattern, stock has given more bullish confirmation by making “Long White candle” on yesterday. Stock was in down trend after making high of 125 in late April 2010 and from last three days stock has given evidence of trend reversal. Daily RSI after appearing in over sold zone is on the verge of positive crossover to signal line. Looking at all above technical parameters traders with moderate risk appetite can consider Buy above 108.50 with tight stop loss of 105.50 for a Target of 114.50.

Stock Ideas for the Day
Reliance Industries: Buy above 1026 for targets of 1031, 1044, 1057 SL of 1018
Reliance Industries: Sell below 1015 for targets of 1010, 998, 985 SL of 1023
Infinite Computer: Buy above 191 for target of 195, 201 SL 188.5
NTPC: Buy above 206 for target of 208, 210 SL 204

Positional Call
Dishman Pharma: Buy above 222 for target of 234 SL 217 (One Week)
Petronet: Buy above 84.7 for target of 89 SL 83 (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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