Market outlook for 16/07/10

Nifty closed down 14.50 points (0.27%) at 5386.15 whilst Nifty July Future closed at 5388.45 premium of 2.3 points.

• FII bought in Cash (Net buy 365.09 Crore)
• FII bought in index options, but sold in index futures and stock futures (Net buy 729.69 Crore)
• DII sold big in Cash (Net sell 588.46 Crore)
• US market is in RED as of now.
• Global cues are flat to negative.
• SGX nifty is negative 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 562:751

NIFTY Technical

Current Spot: 5378.75
Pivot: 5380
3DEMA: 5380
7DEMA: 5356
20DEMA: 5297
50DEMA: 5232
RSI (7 days): 63.65
Parabolic SAR: 5270
Supports: 5360 - 5341
Resistance: 5399 - 5446

MP Values Spot: VAH - 5393, POC - 5381, VAL - 5376
MP Values Futures: VAH - 5400, POC - 5385, VAL - 5379

Over all view
On Thursday the key benchmark indices closed the volatile trade on negative note, following pessimistic cues from the global markets. Besides, profit booking intensified in PSU, Oil&Gas and Realty space. After a sharp selloff in the previous session, the domestic markets opened the day's trade on positive note. However the leading Indian indices slipped down to red amid weak global cues.
Nifty closed above all moving averages except Day HEMA which confirms that profit booking was the order of the day at higher levels. (See Tech Table for details). RSI is in downtrend from overbought level, Stochastic has also given a negative crossover and trending downwards, and the volume seems to be normal.
Nifty just closed below the up trending channel, and the channel break is bearish, now the support for the day comes at 5358, any close below this level will be highly bearish in nature and take nifty to 5340 and below. The resistance comes at Day HEMA at 5397, close above will add to the bullishness.

Target Nifty
Buy Nifty above 5388 - 5403 - 5426 - 5448 SL - 5381
Sell Nifty below 5374 - 5363 - 5341 - 5318 SL - 5386

Stock Ideas for the Day
Reliance Industries: Buy above 1080 for targets of 1082, 1085, 1090 SL of 1078
Reliance Industries: Sell below 1068 for targets of 1066, 1063, 1057 SL of 1077
Gitanjali Gems Ltd.: Buy above 163.5 for target of 166, 169 SL 160.5
Bartronics: Buy above 148 for target of 151, 154 SL 145

Positional Call
ABG Shipyard: Buy above 260 for target of 273 SL 254 (One Week)
PG Foils: Buy above 50.40 for target of 55 SL 49 (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