Market outlook for 19/07/10

Nifty closed up 15.15 points (0.28%) at 5393.90 whilst Nifty July Future closed at 5398.25 premium of 4.35 points.

• FII bought in Cash (Net buy 986.95 Crore)
• FII bought in index options and stock futures, but sold in index futures (Net buy 676.44 Crore)
• DII sold in Cash (Net sell 281.92 Crore)
• US market ended in DEEP RED.
• Global cues are 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 740:565

NIFTY Technical

Current Spot: 5393.90
Pivot: 5390
3DEMA: 5387
7DEMA: 5365
20DEMA: 5306
50DEMA: 5233
RSI (7 days): 66.31
Parabolic SAR: 5269
Supports: 5378 - 5363
Resistance: 5405 - 5417

MP Values Spot: VAH - 5393, POC - 5388, VAL - 5381
MP Values Futures: VAH - 5392, POC - 5387, VAL - 5378

Over all view

On Friday buying interest across the selective indices 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 IT, Technology, Bankex and FMCG space. After a flat start, the key benchmark Indices traded range bound with negative bias on weak trade in global stocks.
Nifty closed above all moving averages except Day HEMA which confirms that seller are waiting for higher levels to book profit. (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 broke down from the up trending channel at 5395 to close at 5394, and the channel break is bearish (follow up action required), now the support for the day comes at 5355-5358, any close below this level will be highly bearish in nature and take nifty to 5320 and below. The resistance comes at Day HEMA at 5398, close above will add to the momentum to take nifty higher to 5456 and above.

Target Nifty
Buy Nifty above 5402 - 5409 - 5422 - 5442 SL - 5389
Sell Nifty below 5384 - 5381 - 5361 - 5348 SL - 5394

Swing Trade
DLF (Sell)

Stock is trading close to its stiff resistance of 330. Support for stock seems at 280. Stock is likely to undergo correction from close to 324-328 mark. Outcome of forthcoming monetary policy will remain crucial for stock.
Technical indicators stochastic and RSI are currently on the showing downward bias after entering into overbought territory. Though, the stock is trading above 7 and 14 day EWMA, expecting stock to breach its 7 day EWMA mild support from above. Sell at 319 for targets of 305 SL 330

Stock Ideas for the Day
Reliance Industries: Buy above 1071 for targets of 1073, 1077, 1083 SL of 1063
Reliance Industries: Sell below 1058 for targets of 1056, 1053, 1046 SL of 1068
Godrej Ind.: Buy above 188 for target of 191, 194 SL 184

Positional Call
Geometric Ltd.: Buy above 82 for target of 89 SL 80 (One Week)
Atul Ltd.: Buy above 112 for target of 118 SL 110 (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