Market outlook for 13/07/10

Nifty closed up 30.55 points (0.57%) at 5383 whilst Nifty July Future closed at 5381.20 discount of 1.80 points.

• FII bought big in Cash (Net buy 1001.75 Crore)
• FII bought in index futures, index options and stock futures (Net buy 1583.88 Crore)
• DII sold in Cash (Net sell 293.05 Crore)
• US market is flat.
• 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: 5400 and 5300.
• Advance Decline for the day was 719:592

NIFTY Technical

Current Spot: 5383.00
Pivot: 5382
3DEMA: 5349
7DEMA: 5314
20DEMA: 5265
50DEMA: 5217
RSI (7 days): 67.78
Parabolic SAR: 5221
Supports: 5362 - 5341
Resistance: 5403 - 5424

MP Values Spot: VAH - 5393, POC - 5379, VAL - 5371
MP Values Futures: VAH - 5387, POC - 5376, VAL - 5366

Over all view
Nifty on Monday opened near previous day’s close and galloped up to 5402.7 within the first hour itself on the back of strong global cues. On release of IIP data which was not upto expectation (11.5% vs 16.5% MoM basis) Nifty slide to the low point of the day at 5361 thereafter remained range bound and closed at 5383. Nifty saw some short covering and very good addition in 5300PE and 5500CE option. 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, and the volume seems to be just normal. Small negative divergences can be seen in Nifty.
Nifty is still continuing in the up trending channel and now the channel support comes at 5355, and 5400 the double top area is resistance zone. Break down from the up trending channel at 5355 will take Nifty to 5320 and below, but holding above 5355, Nifty can go beyond 5400, 5450, so buy on dips keeping a SL of 5330.

Target Nifty
Buy Nifty above 5385 - 5400 - 5421 - 5444 SL - 5385
Sell Nifty below 5371 - 5360 - 5337 - 5316 SL - 5382

Stock Ideas for the Day
Reliance Industries: Buy above 1064 for targets of 1067, 1071, 1078 SL of 1056
Reliance Industries: Sell below 1051 for targets of 1049, 1045, 1036 SL of 1061
Educomp: Buy above 580 for target of 585, 591 SL 672
Sparc: Buy above 100 for target of 101, 103 SL 98

Positional Call
Amtek Auto: Buy above 189 for target of 204 SL 183 (One Month)
GIC Housing Finance Ltd.: Buy above 117 for target of 121 SL 115 (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