Market outlook for 27/07/10

Nifty closed down 30.50 points (0.56%) at 5418.6 whilst Nifty July Future closed at 5422.55 premium of 3.95 points.

• FII bought in Cash (Net buy 196.32 Crore)
• FII bought in index options, index futures but sold in stock futures (Net buy 211.11 Crore)
• DII sold big in Cash (Net sell 718.87 Crore)
• US market is trading 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 389:939

NIFTY Technical

Current Spot: 5418.60
Pivot: 5431
3DEMA: 5425
7DEMA: 5410
20DEMA: 5355
50DEMA: 5279
RSI (7 days): 60.93
Parabolic SAR: 5348
Supports: 5396 - 5374
Resistance: 5454 - 5488

MP Values Spot: VAH - 5464, POC - 5437, VAL - 5427
MP Values Futures: VAH - 5445, POC - 5438, VAL - 5426
MP Values Bank Nifty Futures: VAH - 10047, POC - 10026, VAL - 10002

Over all view

The domestic key benchmark indices today closed the day's trade on a negative note on sustained selling pressures across the sectoral indices. The investors turned a bit calculative ahead of the Reserve Bank of India's quarterly monetary policy review scheduled tomorrow. Further, the negative opening of the European market led the domestic market to touch fresh intraday low in the afternoon session.
Nifty today opened firm but profit booking at higher levels brought the index down and it ultimately managed to close just above 5DEMA. Nifty closed below Day High EMA which is a bit bearish in nature, any close below 5DEMA and Day LEMA will reverse the trend. (See Tech Table for details). RSI is in down trend from overbought level, Stochastic is positive but over 80 level, and the volume seems to be good today.
Nifty today got resisted at the Box Range (5453-5478) at opening and closed inside the range at 5419; break of this range will decide the future course of Nifty. The trend line resistance is at 5495, breakout will take Nifty to its next trend line resistance at 5515 and above, the support trend line comes at 5405, and break of this will be bearish and take nifty to the next Box support at 5353. Trade light at higher levels and wait for any breakdown or breakup confirmation to take new position.

Target Nifty
Buy Nifty above 5438 - 5449 - 5478 - 5496 SL - 5432
Sell Nifty below 5414 - 5406 - 5390 - 5361 SL - 5437

Stock Ideas for the Day
Reliance Industries: Buy above 1062 for targets of 1064, 1071, 1078 SL of 1054
Reliance Industries: Sell below 1048 for targets of 1046, 1042, 1032 SL of 1060
Bharti Airtel: Buy above 322 for target of 324, 329 SL 316
Gitanjali: Buy above 166 for target of 167.5, 170 SL 164

Positional Call
Tulsi: Buy above 52 for target of 60 SL 50 (One Month)
Kernex: Buy above 126 for target of 139 SL 118 (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