Market outlook for 02/07/10

Nifty fell 61.10 points (1.15%) to 5251.40 whilst Nifty July Future closed at 5258.30 premium of 6.9 points.

• FII sold in Cash (Net sell 160.61 Crore)
• FII sold in index futures and stock futures but bought in index options (Net sell 1213.05 Crore)
• DII sold in Cash (Net sell 6.70 Crore)
• US market is trading 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: 5200 and 5100.
• Advance Decline for the day was 571:740

NIFTY Technical

Current Spot: 5251.40
Pivot: 5253
3DEMA: 5275
7DEMA: 5282
20DEMA: 5229
50DEMA: 5189
RSI (7 days): 48.64
Parabolic SAR: 5347
Supports: 5230 - 5209
Resistance: 5275 - 5298

MP Values Spot: VAH - 5256, POC - 5251, VAL - 5239
MP Values Futures: VAH - 5258, POC - 5252, VAL - 5240

Over all view
Nifty on Thursday opened near 5275 down by 36 points from previous close on negative global cues. Nifty traded within the down trending channel for the better part of the day and closed within the channel at 5251.40. Nifty closed below the Monthly, Weekly and the Daily high EMA, but just above Daily low EMA confirming slight bearishness (See Tech Table for details). RSI and Stochastic are both in downtrend now from overbought level.
Break out from the down trending channel at 5330 can take Nifty to 5400 and above. Break down from the up trending channel will be bearish and can take Nifty to 5190, 5160. Sell on rise near the channel top with stop loss of 5335 on closing basis.

Target Nifty
Buy Nifty above 5262 - 5276 - 5296 - 5320 SL - 5252
Sell Nifty below 5247 - 5237 - 5213 - 5193 SL - 5257

Stock Ideas for the Day
Reliance Industries: Buy above 1082 for targets of 1084, 1094, 1103 SL of 1074
Reliance Industries: Sell below 1071 for targets of 1068, 1061, 1049 SL of 1079
SouthBank: Buy above 171.1 for target of 172.5, 175 SL 169.1
Hindalco: Buy above 142 for target of 145, 149 SL 139

Positional Call
Mastek: Buy above 295 for target of 324 SL 281 (One Week)
BPCL: Buy above 659 for target of 688 SL 646 (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