Market outlook for 05/07/10

Nifty fell 14.30 points (0.27%) to 5237.10 whilst Nifty July Future closed at 5250.85 premium of 13.75 points.

• FII sold in Cash (Net sell 305.23 Crore)
• FII sold in index futures and stock futures but bought in index options (Net sell 514.82 Crore)
• DII bought in Cash (Net buy 26.26 Crore)
• US market ended in Red.
• Global cues are flat to Positive.
• SGX nifty is flat 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 618:683

NIFTY Technical

Current Spot: 5237.10
Pivot: 5247
3DEMA: 5256
7DEMA: 5271
20DEMA: 5230
50DEMA: 5197
RSI (7 days): 46.44
Parabolic SAR: 5339
Supports: 5216 - 5195
Resistance: 5268 - 5298

MP Values Spot: VAH - 5267, POC - 5251, VAL - 5245
MP Values Futures: VAH - 5278, POC - 5264, VAL - 5257

Over all view

Nifty on Friday opened near 5260 up by 10 points and went higher to touch the day’s high at 5277.25 and started drifting lower with high dose of volatility to end the day at the low point of the day at 5237.10. Nifty traded within the down trending channel for the whole day and closed within the channel. Nifty closed below the Monthly, Weekly and the Daily high EMA, but just above Daily low EMA at 5236 confirming the 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 5315 can take Nifty to 5350 and above. Break down from the up trending channel at 5210 will be bearish and can take Nifty to 5180, 5120. Sell on rise near the channel top with stop loss of 5330 on closing basis.

Target Nifty
Buy Nifty above 5261 - 5274 - 5301 - 5319 SL - 5256
Sell Nifty below 5243 - 5235 - 5216 - 5190 SL - 5261

Stock Ideas for the Day
Reliance Industries: Buy above 1078 for targets of 1081, 1089, 1096 SL of 1070
Reliance Industries: Sell below 1064 for targets of 1062, 1057, 1046 SL of 1075
VIP Ind: Buy above 361 for target of 365, 370 SL 355
Engineers India Ltd.: Buy above 363 for target of 368, 375 SL 355

Positional Call
TT Ltd.: Buy above 30.5 for target of 36 SL 28.5 (One Month)
MRPL: Buy above 83.5 for target of 89 SL 81 (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