Market outlook for 03/08/10

Nifty closed up 64.05 points (1.19%) at 5431.65 whilst Nifty August Future closed at 5434.35 premium of 2.7 points.

• FII bought in Cash (Net buy 728.14 Crore)
• FII bought in index futures, index options and stock futures (Net buy 1858.70 Crore)
• DII sold in Cash (Net sell 172.80 Crore)
• US market is trading in GREEN.
• Global cues are flat to Positive.
• SGX nifty is positive as of now.
• Most Active Nifty August Call Option: 5400 and 5500.
• Most Active Nifty July Put Options: 5400 and 5300.
• Advance Decline for the day was 840:475

NIFTY Technical

Current Spot: 5431.65
Pivot: 5425
5DEMA: 5409
10DEMA: 5403
20DEMA: 5375
50DEMA: 5296
RSI (7 days): 59.37
Parabolic SAR: 5475
Supports: 5412 - 5393
Resistance: 5445 - 5458

MP Values Spot: VAH - 5435, POC - 5419, VAL - 5409
MP Values Futures: VAH - 5429, POC - 5421, VAL - 5411
MP Values Bank Nifty Futures: VAH - 10340, POC - 10279, VAL - 10235

Over all view

Heavy buying across the sectoral indices led the domestic market to close the session on an optimistic note. The upsurge was supported by firm Asian markets as well as and strong July month sales from the automobile firms. Further, the investors' sentiments were supported by the manufacturing expansion that gained momentum in July 2010 to 57.6 in July 2010 from 57.3 in June 2010 on the back of new orders as well as stronger factory output.
Nifty ultimately closed above the psychological level of 5400, and also above all moving averages maintaining bullish momentum, (See Tech Table for details). RSI has given an upward tick, Stochastic is on the verge of positive crossover, and the volume was on the lower side.
Nifty yesterday opened gap up and carried the momentum throughout the trading day and closed at the high point at 5432, still within the range (5453-5478); break of this range will decide the future course of Nifty. The trend line resistance is at 5475, 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 5438 - 5447 - 5463 - 5487 SL - 5423
Sell Nifty below 5418 - 5413 - 5389 - 5374 SL - 5429

Stock Ideas for the Day
Reliance Industries: Buy above 1021 for targets of 1023, 1025, 1028 SL 1013
Reliance Industries: Sell below 1009 for targets of 1007, 1005, 1002 SL 1013
Gitanjali: Buy above 173 for targets of 175, 178 SL 170
HCC: Buy above 140 for targets of 141, 143 SL 137.8

Positional Call
GSFC: Buy above 315 for target of 340 SL 308 (One Week)
MCD Holding: Buy above 190 for target of 212 SL 180 (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