Market outlook for 26/07/10

Nifty closed up 7.15 points at 5449.10 whilst Nifty July Future closed at 5443.80 discount of 5.30 points.

• FII bought in Cash (Net buy 711.08 Crore)
• FII bought in index options, stock futures but sold in index futures (Net buy 1545.64 Crore)
• DII sold in Cash (Net sell 101.56 Crore)
• US market ended in GREEN.
• 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 454:856

NIFTY Technical

Current Spot: 5449.10
Pivot: 5454
3DEMA: 5432
7DEMA: 5407
20DEMA: 5348
50DEMA: 5274
RSI (7 days): 73.09
Parabolic SAR: 5334
Supports: 5430 - 5412
Resistance: 5473 - 5496

MP Values Spot: VAH - 5461, POC - 5449, VAL - 5443
MP Values Futures: VAH - 5458, POC - 5453, VAL - 5440

Over all view

Extending yesterday's gain, the key Indian bourses closed the day's trade with marginal gain. The buying interest emerged across Technology, CG and CD space while Realty, Metal and HC exhibited selling pressure. The domestic markets moved positive in mid-afternoon trade as European stocks and U.S index futures rose.
Nifty today opened firm but profit booking at higher levels brought the index down but still managed to close positive and above all Technical Averages confirming bullishness. (See Tech Table for details). RSI is in uptrend but in overbought level, Stochastic is positive but over 80 level, and the volume seems to be good today.
Nifty today got resisted at the trend line at opening and closed just inside the box at 5449. Break of this trend line resistance at 5486 will take Nifty to is next trend line resistance at 5515 and above, the support trend line comes at 5400, and break of this will be bearish and take nifty to the next Box support at 5350. Trade light at higher levels and wait for any breakdown and breakup confirmation to take new position.

Target Nifty
Buy Nifty above 5453 - 5468 - 5494 - 5515 SL - 5447
Sell Nifty below 5436 - 5425 - 5404 - 5378 SL - 5452

Swing Trade

EIH Hotel has given breakout from the ‘Falling Wedge’ pattern on weekly chart as prices closed above Rs124 with sporadically high volumes this week. Daily chart depicts formation of Inverted Head and Shoulder pattern with neckline persisting at its 200-DMA at Rs123.
We advise buying stock in the range of Rs126-129 with stop loss of Rs122 for a target of Rs142.

Stock Ideas for the Day
Reliance Industries: Buy above 1068 for targets of 1070, 1074, 1080 SL of 1066
Reliance Industries: Sell below 1055 for targets of 1053, 1050, 1043 SL of 1065
Allahabad Bank: Buy above 186 for target of 189, 193 SL 183
UCO Bank: Buy above 92 for target of 94, 97 SL 90

Positional Call
MCD Holding: Buy above 138 for target of 152 SL 132 (One Month)
Gati: Buy above 87 for target of 93 SL 83 (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