Market outlook for 20/07/10

Nifty closed down 7.45 points (0.14%) at 5386.45 whilst Nifty July Future closed at 5384.80 discount of 1.65 points.

• FII bought in Cash (Net buy 153.79 Crore)
• FII sold in index futures, stock futures, and index options (Net sell 925.86 Crore)
• DII sold in Cash (Net sell 261.30 Crore)
• US market is positive as of now.
• Global cues are flat to positive.
• SGX nifty is flat as of now.
• E-mini S&P CNX Nifty (Nifty 50) Futures 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 629:690

NIFTY Technical

Current Spot: 5386.45
Pivot: 5386
3DEMA: 5387
7DEMA: 5371
20DEMA: 5314
50DEMA: 5239
RSI (7 days): 63.64
Parabolic SAR: 5284
Supports: 5362 - 5338
Resistance: 5410 - 5433

MP Values Spot: VAH - 5401, POC - 5393, VAL - 5384
MP Values Futures: VAH - 5403, POC - 5393, VAL - 5384

 

Over all view

On Monday, the leading Indian Indices belled the session with gap down, tracking weak global cues. The key benchmark indices moved range bound as lack of encouraging cues from the global market extended the pessimism. The selling interest emerged across FMCG, Realty and CD space while PSU, Bankex, CG and Metal were amongst the gainers.
Though DOW crashed on Friday our Nifty was able to hold on to its support and 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.
There was no change from what we said yesterday, Nifty is still trading below the up trending channel at 5400 to close at 5386, and the channel break is bearish, now the support for the day comes at 5375-5358, 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 5402, close above will add to the momentum to take nifty higher to 5456 and above.

 

Target Nifty
Buy Nifty above 5394 - 5408 - 5434 - 5454 SL - 5387
Sell Nifty below 5377 - 5367 - 5346 - 5320 SL - 5392

 

Stock Ideas for the Day
Reliance Industries: Buy above 1064 for targets of 1065, 1068, 1073 SL of 1056
Reliance Industries: Sell below 1051 for targets of 1050, 1047, 1043 SL of 1061
UCO Bank: Buy above 88.5 for target of 89.5, 91 SL 86.5
Gati: Buy above 75 for target of 77, 80 SL 72

 

Positional Call
Tata Coffee Ltd.: Buy above 470 for target of 505 SL 455 (One Week)
Andhra Bank: Buy above 146 for target of 162 SL 140 (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