Market outlook for 06/07/10

Nifty closed down 1.20 points (0.02%) at 5235.90 whilst Nifty July Future closed at 5249.10 premium of 13.20 points.

• FII sold in Cash (Net sell 220.55 Crore)
• FII sold in index futures, stock futures and index options (Net sell 619.01 Crore)
• DII sold in Cash (Net sell 51.23 Crore)
• US market was closed.
• 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: 5200 and 5000.
• Advance Decline for the day was 675:629

NIFTY Technical

Current Spot: 5235.90
Pivot: 5238
3DEMA: 5246
7DEMA: 5262
20DEMA: 5230
50DEMA: 5198
RSI (7 days): 46.24
Parabolic SAR: 5331
Supports: 5224 - 5211
Resistance: 5250 - 5265

MP Values Spot: VAH - 5247, POC - 5240, VAL - 5235
MP Values Futures: VAH - 5257, POC - 5252, VAL - 5244

Over all view

Nifty on Monday opened near 5232 and steadily climbed till 5252 on low volume due to all India strike. After that nifty started drifting lower during the second half on not so good global cues and ended the day at 5235.90. Nifty traded within the down trending channel for the whole day. Nifty closed below the Monthly, Weekly and the Daily high EMA, but just above Daily low EMA at 5233 confirming the bearishness (See Tech Table for details). RSI and Stochastic are both in downtrend. Though this being the 11th day from the top of 5367, the correction seems to be very shallow with the channel bottom and 20 DMA giving good support.
Break out from the down trending channel at 5310 can take Nifty to 5350 and above. Break down from the up trending channel at 5205 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 5253 - 5262 - 5277 - 5292 SL - 5247
Sell Nifty below 5241 - 5235 - 5222 - 5206 SL - 5252

Stock Ideas for the Day
Reliance Industries: Buy above 1071 for targets of 1073, 1076, 1081 SL of 1065
Reliance Industries: Sell below 1063 for targets of 1062, 1060, 1055 SL of 1071
Fiemind: Buy above 176 for target of 180, 185 SL 171
Edserv: Buy above 220 for target of 214, 220 SL 214

Positional Call
RCF: Buy above 90.5 for target of 100 SL 89 (One Week)
Cairn India: Buy above 295 for target of 310 SL 288 (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