Market outlook for 14/07/10

Nifty closed up 17.65 points (0.33%) at 5400.65 whilst Nifty July Future closed at 5417.10 premium of 16.45 points.

• FII bought in Cash (Net buy 784.68 Crore)
• FII sold in index futures and stock futures, bought small in index options (Net sell 251.52 Crore)
• DII sold in Cash (Net sell 650.96 Crore)
• US market is in Green.
• Global cues are flat to Positive.
• SGX nifty is flat as of now.
• Most Active Nifty July Call Option: 5400 and 5500.
• Most Active Nifty July Put Options: 5400 and 5300.
• Advance Decline for the day was 758:553

NIFTY Technical

Current Spot: 5400.65
Pivot: 5388
3DEMA: 5375
7DEMA: 5336
20DEMA: 5278
50DEMA: 5223
RSI (7 days): 69.82
Parabolic SAR: 5232
Supports: 5371 - 5341
Resistance: 5418 - 5435

MP Values Spot: VAH - 5383, POC - 5377, VAL - 5364
MP Values Futures: VAH - 5382, POC - 5371, VAL - 5360

Over all view
Nifty on Tuesday opened flat with negative bias tracking Infosys Technologies quarterly numbers, lagged estimates followed by mixed cues from the global markets. After a weak start, the key benchmark Indices traded range bound with negative bias on weak trade in global stocks. Buying interest in the final hours led the domestic market to close the day's trade on firm note. The up-move was mainly led by gains in Realty and Oil & Gas space and the positive opening of European stocks.
Nifty closed above all moving averages confirming the bullishness (See Tech Table for details). RSI is in uptrend above the 50 levels, Stochastic has entered over bought region, and the volume seems to be just normal.
Nifty is still continuing in the up trending channel and now the channel support comes at 5380 and 5440 the minor channel top acting as the resistance zone. Break down from the up trending channel at 5380 will take Nifty to 5350 and below, but holding above 5380, Nifty can go beyond 5420, 5450, so buy on dips keeping a SL of 5380.

Target Nifty
Buy Nifty above 5421 - 5437 - 5460 - 5495 SL - 5396
Sell Nifty below 5391 - 5379 - 5339 - 5316 SL - 5402

Stock Ideas for the Day

Reliance Industries: Buy above 1077 for targets of 1080, 1088, 1098 SL of 1067
Reliance Industries: Sell below 1064 for targets of 1061, 1052, 1044 SL of 1072
Deccan Chronicle: Buy above 135 for target of 137, 141 SL 132
United Phosphorus: Buy above 180 for target of 182, 184 SL 177.6

Positional Call
Dena Bank: Buy above 99 for target of 106 SL 96 (One Week)
Kiri Dyes: Buy above 532 for target of 570 SL 115 (One Month)

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