Market outlook for 12/07/10

Nifty closed up 55.60 points (1.05%) at 5352.45 whilst Nifty July Future closed at 5353 premium of 0.55 points.

• FII bought big in Cash (Net buy 1104.08 Crore)
• FII bought in index futures, index options and stock futures (Net buy 1633.70 Crore)
• DII bought in Cash (Net buy 38.72 Crore)
• US market ended 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 776:541

NIFTY Technical

Current Spot: 5352.45
Pivot: 5345
3DEMA: 5314
7DEMA: 5291
20DEMA: 5253
50DEMA: 5211
RSI (7 days): 64.18
Parabolic SAR: 5213
Supports: 5331 - 5310
Resistance: 5366 - 5380

MP Values Spot: VAH - 5356, POC - 5344, VAL - 5338
MP Values Futures: VAH - 5359, POC - 5353, VAL - 5346

Over all view
Nifty on Friday opened near 5297 and flared up to 5336 within a minute and steadily climbed till the high of 5359. Nifty thereafter remained in range of 24 points the whole day getting resisted near 5359 thrice and ultimately closed at 5352. Nifty on this day pulled back into the up trending channel to close strong. The global cues also helped Nifty to make a 1% gain for the day. Nifty closed above all moving averages confirming the bullishness (See Tech Table for details). RSI is in uptrend above the 50 levels, Stochastic has also given a crossover but the volume seems to be on the lower side.
Nifty has pulled back into the up trending channel and now the channel support comes at 5330, and said earlier 5360, the previous selloff area is resistance zone. Break down from the up trending channel at 5330 will take Nifty to 5290 but holding above 5330, Nifty can go beyond 5360, 5400, so buy on dips keeping a SL of 5290.

Target Nifty
Buy Nifty above 5358 - 5370 - 5388 - 5412 SL - 5346
Sell Nifty below 5341 - 5332 - 5310 - 5291 SL - 5352

Swing Trade

Essar Oil (CMP 143)
The stock has broken out from the Triangle on the daily chart at 142. A successful close above the triangle resistance at 142 has confirmed the trend reversal, which was sideways. The triangle resistance also coincides with its 200-DMA, which substantiate uptrend in the near term. In the past few sessions, the stock traded sideways forming whipsaws from triangle resistance. However on Friday, the stock closed above the triangle resistance and 200-DMA. The RSI also suggests a positive bias as stock continue to remain above its 200-DMA despite volatility in overall markets. We recommend to buy the stock in the range between 142-145 with stop loss of 134 for target of 158 and 162 in the short term.

Stock Ideas for the Day
Reliance Industries: Buy above 1064 for targets of 1066, 1069, 1074 SL of 1056
Reliance Industries: Sell below 1052 for targets of 1050, 1046, 1042 SL of 1062
Hindalco: Buy above 149.1 for target of 150.9, 152.8 SL 147.9
JP Associates: Buy above 125.4 for target of 126.6, 127.9 SL 123.8

Positional Call
JBF Ind: Buy above 140 for target of 154 SL 135 (One Month)
Unitech: Buy above 76 for target of 81 SL 74 (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