Market outlook for 08/07/10

Nifty fell 47.95 points (0.91%), closed at 5241.10 whilst Nifty July Future closed at 5247.70 premium of 6.6 points.

• FII sold in Cash (Net sold 49.24 Crore)
• FII bought in index options but sold in stock futures and index futures (Net buy 889.88 Crore)
• DII bought in Cash (Net buy 134.69 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 522:791

NIFTY Technical

Current Spot: 5241.10
Pivot: 5256
3DEMA: 5254
7DEMA: 5262
20DEMA: 5236
50DEMA: 5204
RSI (7 days): 47.03
Parabolic SAR: 5317
Supports: 5219 - 5196
Resistance: 5278 - 5315
MP Values Spot: VAH - 5269, POC - 5257, VAL - 5246
MP Values Futures: VAH - 5274, POC - 5267, VAL - 5254

Over all view

Nifty on Wednesday opened near the high of the day at 5291 and steadily declined in line with global peers to close the day near the day’s low at 5241. Nifty traded within the down trending channel for the whole day getting the much needed support near the channel bottom. Nifty closed below the Monthly, Weekly and the Daily high EMA, and just above the Day’s low EMA at 5233 confirming the bearishness (See Tech Table for details). RSI is still in sell mode and below the 50 level, and Stochastic is also in downtrend.
Nifty is moving inside the down trending channel for the last 13 days, break out from the down trending channel at 5300 can take Nifty to 5360, the previous sell off area and above. Break down from the up trending channel at 5210 will be bearish and can take Nifty to 5180, 5120. Sell near the channel top and buy near the channel bottom till the down trending channel is in place.

Target Nifty
Buy Nifty above 5261 - 5276 - 5307 - 5329 SL - 5255
Sell Nifty below 5240 - 5229 - 5207 - 5176 SL - 5260

Stock Ideas for the Day
Reliance Industries: Buy above 1065 for targets of 1068, 1079, 1090 SL of 1057
Reliance Industries: Sell below 1048 for targets of 1046, 1039, 1024 SL of 1062
Prakash Ind: Buy above 175 for target of 178, 184 SL 171
IOB: Buy above 108.5 for target of 109.7, 111.5 SL 106.2

Positional Call
Everonn: Buy above 514 for target of 565 SL 497 (One Month)
MRPL: Buy above 82 for target of 87 SL 80 (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