Market outlook for 07/07/10

Nifty closed up 53.15 points (1.02%) at 5289.05 whilst Nifty July Future closed at 5306.90 premium of 17.85 points.

• FII bought in Cash (Net buy 342.35 Crore)
• FII bought in index futures but sold in stock futures and index options (Net buy 643.74 Crore)
• DII sold in Cash (Net sell 84.21 Crore)
• US market is in Green.
• Global cues are flat to Positive.
• SGX nifty is positive 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 786:519

NIFTY Technical

Current Spot: 5289.05
Pivot: 5273
3DEMA: 5268
7DEMA: 5269
20DEMA: 5236
50DEMA: 5202
RSI (7 days): 56.2
Parabolic SAR: 5324
Supports: 5249 - 5209
Resistance: 5313 - 5337

MP Values Spot: VAH - 5297, POC - 5264, VAL - 5260
MP Values Futures: VAH - 5310, POC - 5271, VAL - 5264

Over all view
Nifty on Tuesday opened near 5231 and steadily and firmly climbed till the high of 5297 on the back of supportive global cues and finally closed the day at 5289. Nifty traded within the down trending channel for the whole day just getting resisted near the channel top. Nifty closed over the Monthly, Weekly and the Daily high EMA, confirming the bullishness (See Tech Table for details). RSI has just given an uptick and Stochastic is still in downtrend.
Break out from the down trending channel at 5305 can take Nifty to 5360, the previous sell off area and above. Break down from the up trending channel at 5200 will be bearish and can take Nifty to 5180, 5120. Buy on dips till the Day Low EMA at 5233 is held.

Target Nifty
Buy Nifty above 5311 - 5334 - 5363 - 5414 SL - 5282
Sell Nifty below 5277 - 5258 - 5206 - 5177 SL - 5287

Stock Ideas for the Day
Reliance Industries: Buy above 1077 for targets of 1079, 1087, 1096 SL of 1071
Reliance Industries: Sell below 1068 for targets of 1066, 1060, 1052 SL of 1076
Polaris Software: Buy above 193.5 for target of 195, 198 SL 190.5
Philips Carbon: Buy above 209 for target of 215, 223 SL 201

Positional Call
Mirc Electronics: Buy above 27 for target of 32 SL 25.3 (One Week)
Bharat Forge: Buy above 310 for target of 327 SL 302 (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