Market outlook for 09/07/10

Nifty closed up 55.75 points (1.02%) at 5296.85 whilst Nifty July Future closed at 5309.45 premium of 12.6 points.

• FII bought big in Cash (Net buy 957.06 Crore)
• FII bought in index futures, index options and stock futures (Net buy 1976.14 Crore)
• DII sold in Cash (Net sell 270.57 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 831:475

NIFTY Technical

Current Spot: 5296.85
Pivot: 5302
3DEMA: 5276
7DEMA: 5271
20DEMA: 5242
50DEMA: 5202
RSI (7 days): 56.63
Parabolic SAR: 5210
Supports: 5283 - 5270
Resistance: 5315 - 5334

MP Values Spot: VAH - 5320, POC - 5311, VAL - 5304
MP Values Futures: VAH - 5338, POC - 5329, VAL - 5315

Over all view

Nifty on Thursday gaped up and opened near 5300 and steadily climbed till 5320 but got resisted there and pulled back into the channel and ended the day at 5297. The global cues also helped Nifty to make a 1% gain for the day. Nifty closed just below the Weekly and the Daily high EMA, but above the Monthly high EMA and Day’s low EMA at 5251 confirming the bullishness (See Tech Table for details). RSI has given an uptick and just crossed above 50 levels, Stochastic has also given a crossover but the volume seems to be on the lower side.
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. Holding above 5251, Nifty can go beyond 5345, 5400, so buy on dips keeping a SL of 5251.

Target Nifty
Buy Nifty above 5322 - 5329 - 5350 - 5364 SL - 5315
Sell Nifty below 5301 - 5295 - 5285 - 5263 SL - 5320

Stock Ideas for the Day
Reliance Industries: Buy above 1066 for targets of 1068, 1072, 1078 SL of 1058
Reliance Industries: Sell below 1052 for targets of 1050, 1046, 1040 SL of 1063
Bharat Forge: Buy above 325 for target of 328, 334 SL 321
KPIT: Buy above 154 for target of 156, 159 SL 152

Positional Call
RCF: Buy above 92 for target of 101 SL 89 (One Month)
Lakshmi Energy & Foods: Buy above 109 for target of 115 SL 107 (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