Market outlook for 30/07/10

Nifty closed up 11.35 points (0.21%) at 5408.90 whilst Nifty August Future closed at 5423.80 premium of 14.9 points.

• FII bought in Cash (Net buy 578.85 Crore)
• FII bought in index options, index futures but sold in stock futures (Net buy 2008.83 Crore)
• DII sold big in Cash (Net sell 920.35 Crore)
• US market is trading flat to Negative.
• Global cues are flat to Negative.
• SGX nifty is negative as of now.
• Most Active Nifty August Call Option: 5500 and 5600.
• Most Active Nifty July Put Options: 5400 and 5300.
• Advance Decline for the day was 607:699

NIFTY Technical

Current Spot: 5408.90
Pivot: 5402
5DEMA: 5412
10DEMA: 5403
20DEMA: 5370
50DEMA: 5290
RSI (7 days): 55.21
Parabolic SAR: 5382
Supports: 5388 - 5368
Resistance: 5423 - 5436
MP Values Spot: VAH - 5406, POC - 5400, VAL - 5390
MP Values Futures: VAH - 5421, POC - 5413, VAL - 5403
MP Values Bank Nifty Futures: VAH - 10112, POC - 10060, VAL - 10046

Over all view

Nifty today opened flat, but languished in negative territory till the afternoon session. Short Covering and Rollover intensified after opening of European markets and Nifty ultimately closed above the psychological level of 5400, at 5409 just above Day LEMA but below Day 5EMA which is bearish in nature, follow up action is required. (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 on expiry was range bound making a low of 5382 and a high of 5416 remaining in the Box range of (5453-5478); break of this range will decide the future course of Nifty. The trend line resistance is at 5455, breakout will take Nifty to its next trend line resistance at 5515 and above, the support for nifty comes 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 5413 - 5419 - 5432 - 5451 SL - 5399
Sell Nifty below 5394 - 5384 - 5372 - 5359 SL - 5405

Stock Ideas for the Day
Reliance Industries: Buy above 1021 for targets of 1025, 1034, 1041 SL 1013
Reliance Industries: Sell below 1006 for targets of 1004, 998, 985 SL 1018
IRB Infra: Buy above 274 for targets of 277, 281 SL 269
HDIL: Buy above 265 for targets of 269, 275 SL 261

Positional Call
VGaurd: Buy above 141 for target of 148 SL 137 (One Week)
ANG Industries: Buy above 74 for target of 84 SL 70 (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