Market outlook for 04/08/10

Nifty closed up 7.90 points (0.15%) at 5439.55 whilst Nifty August Future closed at 5435 discount of 4.55 points.

• FII bought in Cash (Net buy 607.42 Crore)
• FII bought in index futures, index options and stock futures (Net buy 1462.58 Crore)
• DII sold in Cash (Net sell 152.52 Crore)
• US market is trading flat to negative.
• Global cues are flat to Negative.
• SGX nifty is flat 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 699:616

NIFTY Technical

Current Spot: 5439.55
Pivot: 5442
5DEMA: 5419
10DEMA: 5410
20DEMA: 5381
50DEMA: 5302
RSI (7 days): 61.00
Parabolic SAR: 5472
Supports: 5424 - 5409
Resistance: 5457 - 5475

MP Values Spot: VAH - 5444, POC - 5440, VAL - 5434
MP Values Futures: VAH - 5437, POC - 5432, VAL - 5427
MP Values Bank Nifty Futures: VAH - 10463, POC - 10444, VAL - 10428

Over all view

Extending yesterday's gain, the key Indian bourses closed the day's trade with marginal gain. The buying interest emerged across Bankex, Oil & Gas and HC space while FMCG, CG and IT exhibited selling pressure.
Nifty opened gap up at 5459 tracking firm global cues, however profit booking at higher levels across the bourses led the key indices to come off the day’s high and ultimately closed just above yesterday’s closing at 5439.55. Nifty closed above all moving averages, except day HEMA, confirming sellers at higher levels, (See Tech Table for details). RSI has given an upward tick, Stochastic has also given positive crossover, and the volume was normal.
Nifty is still trading within the range (5453-5478); 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 for nifty comes at 20DEMA at 5388 and 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 5442 - 5450 - 5466 - 5487 SL - 5429
Sell Nifty below 5424 - 5419 - 5398 - 5382 SL - 5435

Stock Ideas for the Day
Reliance Industries: Buy above 1030 for targets of 1033, 1037, 1045 SL 1022
Reliance Industries: Sell below 1019 for targets of 1017, 1011, 1003 SL 1027
PetroNet: Buy above 98.5 for targets of 100, 102.5 SL 96
Take Solutions: Buy above 37.5 for targets of 39, 41 SL 36.1

Positional Call
Aptech: Buy above 162 for target of 176 SL 155 (One Week)
JKPaper: Buy above 59.8 for target of 66 SL 59 (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