Market outlook for 27/05/10

Nifty rose 110.65 points or 2.30% to 4917.40 whilst Nifty May Future closed at 4917.05 discount of 0.35 points.

• FII sold in Cash (Net sell 166.66 Crore)
• FII bought in index futures and stock futures but sold in index options (Net buy 1980.53 Crore)
• DII bought in Cash (Net buy 64.86 Crore)
• US market ended flat to Negative.
• Global cues are flat to Positive.
• SGX nifty is flat to Negative as of now.
• Most Active Nifty May Call Option: 4900 and 5000.
• Most Active Nifty May Put Options: 4800 and 4900.
• Advance Decline for the day was 979:329

NIFTY Technical

Current Spot: 4917.40
Pivot: 4900
3DEMA: 4897
7DEMA: 4938
20DEMA: 5047
100DEMA: 5086
RSI (7 days): 39.83
Parabolic SAR: 4991
Supports: 4874 - 4830
Resistance: 4943 - 4949

MP Values Spot: VAH - 4891, POC - 4877, VAL - 4861
MP Values Futures: VAH - 4880, POC - 4870, VAL - 4854

Over all view
Yesterday Nifty has formed “White Opening Marubozu” a bullish reversal pattern; technically it may be a first day of reversal in trend. Although reliability of this pattern is low as this is a single candlestick pattern but it should not avoid as this occurred after good amount of correction. 200 days SMA placed at 4998 levels and now this will work as good resistance zone in market and one should not forget trend is still bearish as long as Nifty is below 200 days SMA. Daily momentum indicators are showing some strength after experiencing over sold zone.

Target Nifty
Buy Nifty above 4927 - 4958 - 5010 - 5047 SL - 4921
Sell Nifty below 4910 - 4875 - 4837 - 4786 SL - 4926

Swing Trade
Punjlloyd (131.20)

Stock has fallen more than 30 % in last two months and from last four trading days stock has found bottom at 126 - 127 levels and daily momentum indicators are also hovering in over sold zone so this two combination favor that bottom of the stock is formed. On candlestick front yesterdays stock has formed “White Candle” with decent volume breakout, more over daily momentum indicators have also given positive crossover to signal line. Looking at all above technical parameters traders with moderate risk appetite can consider Buy at current level with tight stop loss of 126 on closing basis for a Target of 144.

Stock Ideas for the Day
Reliance Industries: Buy above 1011 for targets of 1014, 1019, 1032 SL of 1000
Reliance Industries: Sell below 998 for targets of 995, 987, 980 SL of 1006
Crompton Greaves: Buy above 234.8 for target of 238, 245 SL 229
India Cement: Buy above 111 for target of 113,117 SL 107

Positional Call
TCS: Buy above 738 for target of 772 SL 724 (One Month)
Sail: Buy above 199 for target of 212 SL 190 (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

Call 09831497250 or mail us @ S&P Wealth Creators with your Name and Mobile No. for subscription offer of intraday calls during Market hours.