Market outlook for 02/06/10

Nifty fell sharply 116.10 points (-2.28%) to 4970.20 whilst Nifty June Future closed at 4944.05 discount of 26.15 points.

• FII sold in Cash (Net sell 526.49 Crore)
• FII bought in index options but sold in index futures (Net buy 425.63 Crore)
• DII bought in Cash (Net buy 210.62 Crore)
• US market was flat to Positive.
• Global cues are flat to Positive.
• SGX nifty is Positive as of now.
• Most Active Nifty June Call Option: 5100 and 5200.
• Most Active Nifty May Put Options: 4900 and 5000.
• Advance Decline for the day was 344:945

NIFTY Technical

Current Spot: 4970.20
Pivot: 5001
3DEMA: 5009
7DEMA: 4999
20DEMA: 5042
100DEMA: 5109
RSI (7 days): 44.91
Parabolic SAR: 4822
Supports: 4930 - 4891
Resistance: 5041 - 5111

MP Values Spot: VAH - 5076, POC - 5051, VAL - 4994
MP Values Futures: VAH - 5050, POC - 5027, VAL - 4967

Target Nifty
Buy Nifty above 4979 - 5016 - 5090 - 5132 SL - 4971
Sell Nifty below 4937 - 4904 - 4862 - 4788 SL - 4978

Swing Trade
Cipla (324) - Ascending Triangle

Stock has formed “Ascending Triangle” a bullish continuation pattern on daily chart with decent volume breakout. Short term moving averages are indicating upward movement; momentum indicators are also forming higher highs in bullish zone. Looking at all above parameter traders with moderate risk appetite can consider buy above 325 with tight SL of 320 on closing basis for a Target of 342.

Stock Ideas for the Day
Reliance Industries: Buy above 1025 for targets of 1033, 1058, 1074 SL of 1017
Reliance Industries: Sell below 1005 for targets of 997, 982, 956 SL of 1022
HindoilExpo: Buy above 191 for target of 197, 208 SL 187
Nagarjuna Fertilizer: Buy above 29.9 for target of 30.3, 30.8 SL 29.3

Positional Call
United Phosphorus: Sell below 173 for target of 160 SL 179 (One Week)
Bajaj Finsrv: Buy above 458 for target of 480 SL 453 (One Week)
DCB: Buy above 50 for target of 55 SL 48.5 (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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