Market outlook for 05/08/10

Nifty closed up 28.30 points (0.52%) at 5467.85 whilst Nifty August Future closed at 5460.2 discount of 7.65 points.

• FII bought in Cash (Net buy 688.69 Crore)
• FII bought in index options and stock futures (Net buy 590.87 Crore)
• DII sold in Cash (Net sell 275.89 Crore)
• US market is trading flat to positive.
• Global cues are flat to positive.
• SGX nifty is flat to 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 680:635

NIFTY Technical

Current Spot: 5467.85
Pivot: 5459
5DEMA: 5435
10DEMA: 5420
20DEMA: 5390
50DEMA: 5303
RSI (7 days): 66.62
Parabolic SAR: 5349 (System Long)
Supports: 5437 - 5406
Resistance: 5490 - 5513

MP Values Spot: VAH - 5452, POC - 5441, VAL - 5435
MP Values Futures: VAH - 5445, POC - 5435, VAL - 5428
MP Values Bank Nifty Futures: VAH - 10422, POC - 10398, VAL - 10382

Over all view

Late buying across the sectoral indices led the domestic benchmark indices to close the day's trade on a positive note. IT, Technology and CG stocks led the gainers pack while Oil & Gas and Metal were among the losers pack.
After a flat to positive opening, the leading Indian indices soon tumbles down on sustained selling pressures across the sectoral indices but bounced back to close at the peak of the day at 5468. Nifty closed above all moving averages, confirming bullishness. (See Tech Table for details). RSI is in up move just nearing overbought level, Stochastic has also given positive crossover, and the volume was normal.
Nifty today got resisted just at top end of the range (5453-5478) and closed at 5468; 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 5515 and above, the support for nifty comes at 20DEMA at 5390 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 5464 - 5478 - 5498 - 5527 SL - 5449
Sell Nifty below 5443 - 5434 - 5405 - 5384 SL - 5454

Stock Ideas for the Day
Reliance Industries: Buy above 1025 for targets of 1028, 1036, 1043 SL 1017
Reliance Industries: Sell below 1011 for targets of 1009, 1004, 993 SL 1022
Autoind: Buy above 173 for targets of 175, 178 SL 170.9
DCM Ltd.: Buy above 83 for targets of 84, 86 SL 80.2

Score Sheet
PetroNet: Buy above 98.5 for targets of 100, 102.5 SL 96 : First Target 99.70 achieved
Take Solutions: Buy above 37.5 for targets of 39, 41 SL 36.1 : First Target 40.10 achieved

Positional Call
Talwalkars: Buy above 207 for target of 225 SL 198 (One Week)
IndiaCem: Buy above 105 for target of 118 SL 100 (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