Market outlook for 28/07/10

Nifty closed up 12 points at 5430.60 whilst Nifty July Future closed at 5434.60 premium of 4 points.

• FII sold in Cash (Net sell 22.80 Crore)
• FII bought in index options, index futures but sold in stock options (Net buy 1507.81 Crore)
• DII big in Cash (Net sell 222.28 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 595:711

NIFTY Technical

Current Spot: 5430.60
Pivot: 5430
5DEMA: 5423
10DEMA: 5403
20DEMA: 5362
50DEMA: 5284
RSI (7 days): 63.7
Parabolic SAR: 5361
Supports: 5409 - 5387
Resistance: 5452 - 5473

MP Values Spot: VAH - 5444, POC - 5430, VAL - 5419
MP Values Futures: VAH - 5454, POC - 5435, VAL - 5425
MP Values Bank Nifty Futures: VAH - 10084, POC - 10007, VAL - 9976

Over all view

Profit booking across the bourses in the final hours led the domestic markets to come off from the day's high and closed the session on marginal gains. The up-move was mainly led by gains in Auto, Realty and CD space and the positive opening of European stocks. Reserve Bank of India (RBI) announced the quarterly monetary policy review in which it raised short-term interest rates, which was at par with the market expectations. Moreover, it increase the GDP forecast for the current financial year revised to 8.5 per cent from 8 per cent earlier, which also supported the investors' sentiments.
Nifty today opened just above yesterday’s close, but languished in red till the RBI monetary policy came. It gathered strength and rallied up to the day’s high of 5450 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 showing negative divergence and over 80 level, and the volume were on the higher side.
Nifty today again got resisted at the Box Range top (5453-5478) and closed inside the range at 5430.6; break of this range will decide the future course of Nifty. The trend line resistance is at 5500, breakout will take Nifty to its next trend line resistance at 5520 and above, the support trend line comes at 5415, 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 5439 - 5456 - 5481 - 5505 SL - 5432
Sell Nifty below 5426 - 5413 - 5388 - 5364 SL - 5437

Stock Ideas for the Day
Reliance Industries: Buy above 1060 for targets of 1062, 1064, 1067 SL 1053
Reliance Industries: Sell below 1050 for targets of 1048, 1045, 1042 SL 1058
FCH: Buy above 245 for targets of 252, 260 SL 238
Nitco: Buy above 58 for targets of 59.5, 61.5 SL 56.5

Positional Call
DBRealty: Buy above 405 for target of 430 SL 396 (One Week)
Kalindi Rail: Buy above 143 for target of 155 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