Market outlook for 29/07/10

Nifty closed down 33.05 points (0.61%) at 5397.55 whilst Nifty July Future closed at 5394.40 discount of 3.15 points.

• FII bought in Cash (Net buy 593.16 Crore)
• FII bought in index options but sold in index futures, stock futures (Net buy 849.53 Crore)
• DII sold big in Cash (Net sell 690.78 Crore)
• US market is trading flat to negative.
• Global cues are flat to negaitive.
• SGX nifty is 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 468:855

NIFTY Technical

Current Spot: 5397.55
Pivot: 5411
5DEMA: 5414
10DEMA: 5402
20DEMA: 5365
50DEMA: 5282
RSI (7 days): 51.88
Parabolic SAR: 5373
Supports: 5373 - 5349
Resistance: 5435 - 5472

MP Values Spot: VAH - 5446, POC - 5433, VAL - 5402
MP Values Futures: VAH - 5445, POC - 5435, VAL - 5400
MP Values Bank Nifty Futures: VAH - 10099, POC - 10067, VAL - 10035

Over all view

Nifty today opened flat and swung between positive and negative territory till the afternoon session. Profit booking intensified after opening of European markets and Nifty ultimately closed below the psychological level of 5400, at 5397 just above Day LEMA but below Day 5EMA which is bearish in nature, and first step towards reversal of 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 sold off near the high of the Box Range top (5453-5478) and closed inside the range at 5397; 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 of the up trending channel got broken today, which is bearish and can 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, till then trade the Box Range.

Target Nifty
Buy Nifty above 5412 - 5429 - 5466 - 5489 SL - 5406
Sell Nifty below 5386 - 5374 - 5351 - 5314 SL - 5411

Stock Ideas for the Day
Reliance Industries: Buy above 1043 for targets of 1055, 1064, 1091 SL 1035
Reliance Industries: Sell below 1016 for targets of 1004, 995, 985 SL 1040
Exide Ind: Buy above 141 for targets of 142.5, 145 SL 139
KS Oil: Buy above 53 for targets of 53.5, 54.3 SL 52.1

Positional Call
VIP Industries: Buy above 415 for target of 435 SL 407 (One Week)
KSL: Buy above 124 for target of 138 SL 119 (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