Market outlook for 21/07/10

Nifty closed down 18.45 points (0.34%) at 5368 whilst Nifty July Future closed at 5363.80 discount of 4.20 points.

• FII bought in Cash (Net buy 297.07 Crore)
• FII bought in stock futures, index options but sold in index futures (Net buy 75.87 Crore)
• DII sold in Cash (Net sell 104.26 Crore)
• US market is Positive as of now.
• Global cues are flat to Positive.
• SGX nifty is Positive 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 512:804

NIFTY Technical

Current Spot: 5368.00
Pivot: 5379
3DEMA: 5377
7DEMA: 5370
20DEMA: 5319
50DEMA: 5248
RSI (7 days): 57.02
Parabolic SAR: 5297
Supports: 5342 - 5317
Resistance: 5405 - 5442

MP Values Spot: VAH - 5409, POC - 5403, VAL - 5384
MP Values Futures: VAH - 5405, POC - 5398, VAL - 5382

Over all view

On Tuesday selling pressure across the selective pivotal at the final hours of the day's trade led the domestic bourses to close the session on bearish note. The overall market breadth was negative, as 10 out of the 13 indices ended in red. Among the sectoral indices HC, Auto and Bankex were the main losers.
Nifty was just able to hold on to its trend line support at 5355 and closed above Day LEMA at 5356 but below Day HEMA, Day 5EMA which confirms the bearishness. (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 is still trading above the trend line support at 5355, break of this trend line will take Nifty to 5300 and below, the resistance comes at Day 5EMA at 5376, close above will add to the momentum to take nifty higher to Day HEMA at 5407 and above.

Target Nifty
Buy Nifty above 5379 - 5398 - 5435 - 5460 SL - 5373
Sell Nifty below 5356 - 5341 - 5316 - 5279 SL - 5378

Stock Ideas for the Day
Reliance Industries: Buy above 1061 for targets of 1064, 1070, 1077 SL of 1053
Reliance Industries: Sell below 1048 for targets of 1046, 1042, 1032 SL of 1059
Panacea Biotec Ltd.: Buy above 195 for target of 196.5, 200 SL 192.3
Sterling Biotech: Buy above 105.9 for target of 106.4, 107.3 SL 104.9

Positional Call
VIP Industries: Buy above 384 for target of 400 SL 374 (One Week)
Kalindee Rail: Buy above 141 for target of 154 SL 138 (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