Market outlook for 01/07/10

Nifty rose 56.35 points (1.07%) to 5312.50 whilst Nifty July Future closed at 5316.25 premium of 3.75 points.

• FII bought in Cash (Net buy 589.88 Crore)
• FII bought in index futures and index options but sold in stock futures (Net buy 364.34 Crore)
• DII sold in Cash (Net sell 151.11 Crore)
• US market ended in RED.
• Global cues are flat to Negative.
• SGX nifty is Negative as of now.
• Most Active Nifty July Call Option: 5300 and 5400.
• Most Active Nifty July Put Options: 5300 and 5200.
• Advance Decline for the day was 770:532

NIFTY Technical

Current Spot: 5312.50
Pivot: 5281
3DEMA: 5299
7DEMA: 5292
20DEMA: 5226
50DEMA: 5184
RSI (7 days): 58.83
Parabolic SAR: 5356
Supports: 5242 - 5171
Resistance: 5352 - 5391

MP Values Spot: VAH - 5288, POC - 5278, VAL - 5243
MP Values Futures: VAH - 5299, POC - 5283, VAL - 5254

Over all view

Nifty on Wednesday gaped down at 5210 on negative global cues, breaking the major uptrend line, but re-entered the channel within minutes and closed strongly at 5312.50. Nifty closed above the Monthly high EMA and Weekly high EMA, confirming the bullishness. Nifty just closed below Day high EMA just below the down trending channel top. RSI and Stochastic are both in overbought level.
Break out from the down trending channel at 5330 can take Nifty to 5400 and above. Buy on dips till the channel bottom at 5245 is not broken.

Target Nifty
Buy Nifty above 5320 - 5348 - 5383 - 5446 SL - 5285
Sell Nifty below 5280 - 5256 - 5193 - 5158 SL - 5291

Stock Ideas for the Day
Reliance Industries: Buy above 1093 for targets of 1101, 1110, 1120 SL of 1078
Reliance Industries: Sell below 1075 for targets of 1070, 1061, 1047 SL of 1083
IDFC: Buy above 180 for target of 183, 187 SL 176.5
IFCI: Buy above 57.4 for target of 58.4, 60 SL 55.5

Positional Call
GIC Housing: Buy above 109 for target of 115 SL 106.5 (One Week)
RPG Life Sciences: Buy above 104 for target of 115 SL 99 (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