Market outlook for 22/07/10

Nifty closed up 31.35 points (0.58%) at 5399.35 whilst Nifty July Future closed at 5403.80 premium of 4.45 points

• FII bought in Cash (Net buy 362.44 Crore)
• FII bought in index options, stock futures and index futures (Net buy 4306.65 Crore)
• DII sold in Cash (Net sell 302.68 Crore)
• US market closed Negative.
• Global cues are flat to Negative.
• SGX nifty is flat to 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 725:564

NIFTY Technical

Current Spot: 5399.35
Pivot: 5396
3DEMA: 5388
7DEMA: 5377
20DEMA: 5327
50DEMA: 5253
RSI (7 days): 64.37
Parabolic SAR: 5310
Supports: 5383 - 5367
Resistance: 5412 - 5425

MP Values Spot: VAH - 5403, POC - 5395, VAL - 5389
MP Values Futures: VAH - 5408, POC - 5396, VAL - 5389

Over all view

On Wednesday the key benchmark indices ended the day's trade on a positive note tracking favoring cues from the global markets. In the late afternoon session as European markets also opened in positive note, following the technology stocks, as strong results from Apple improved sentiment and raised hopes that the second-quarter earnings season will be better than expected. However in the final hour of the session the market trimmed some of its gains and ended its session on a positive note. The overall market breadth was positive, as 12 out of the 13 indices ended in green. Metal, Realty, Auto and CD stocks led the gainers pack while HC ended marginally lower.
Nifty today was positive throughout and closed above all Technical Averages but just below Day HEMA which confirms selling at higher levels. (See Tech Table for details). RSI is showing an uptick moving towards overbought level, Stochastic has also given a negative crossover and trending downwards, and the volume seems to be good today.
Nifty is still trading above the trend line support at 5355, break of this trend line will take Nifty to 5320 and below, the resistance comes at Day HEMA at 5408, close above will add to the momentum to take nifty higher to 5445 and above.

Target Nifty
Buy Nifty above 5408 - 5415 - 5430 - 5450 SL - 5395
Sell Nifty below 5389 - 5381 - 5366 - 5351 SL - 5400

Stock Ideas for the Day
Reliance Industries: Buy above 1061 for targets of 1062, 1064, 1067 SL of 1059
Reliance Industries: Sell below 1059 for targets of 1057, 1054, 1050 SL of 1061
Ashok Leyland: Buy above 72 for target of 73, 74.5 SL 70.5
Syndicate Bank: Buy above 104 for target of 106, 108 SL 102.5

Positional Call
DCB: Buy above 51.1 for target of 55 SL 49.5 (One Week)
Bartronics: Buy above 149 for target of 163 SL 145 (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