Market outlook for 09/08/10

Nifty closed down 7.85 points (0.14%) at 5439.25 whilst Nifty August Future closed at 5442.45 premium of 3.2 points.

• FII bought in Cash (Net buy 664.94 Crore)
• FII sold in index options and stock futures but bought in index futures (Net sell 312.07 Crore)
• DII sold in Cash (Net sell 340.59 Crore)
• US market ended flat.
• Global cues are flat to positive.
• SGX nifty is flat to negative 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 622:700

NIFTY TECHNICAL

Current Spot: 5439.25
Pivot: 5448
5DEMA: 5439
10DEMA: 5428
20DEMA: 5399
50DEMA: 5310
RSI (7 days): 56.58
Parabolic SAR: 5357
Supports: 5423 - 5407
Resistance: 5464 - 5488

MP Values Spot: VAH - 5470, POC - 5459, VAL - 5447
MP Values Futures: VAH - 5474, POC - 5462, VAL - 5451
MP Values Bank Nifty Futures: VAH - 10459, POC - 10439, VAL - 10402

OVERALL VIEW

Profit booking across the selective indices led the domestic markets to close the day's trade with marginal loss. Taking cues from global stocks, today the leading Indian indices belled the day's trade with flat to negative note. But soon the markets managed to recover from the early low as fresh buying interest emerged across the counters.
After a flat to positive opening, the leading Indian indices gradually went upto the high of the day at 5472 and soon tumbled down on sustained selling pressures across the sectoral indices to the low of 5431 and closed flat at 5439. Nifty closed below 5 Day EMA, which is bearish in nature, follow up action is needed on Monday. (See Tech Table for details). RSI has given a down tick from overbought levels; Stochastic is on the verge of negative crossover, the volume was normal.
Nifty is still within the rectangle range (5451-5480) and closed at 5439; break of this range will decide the future course of Nifty. The trend line resistance is at 5490, breakout will take Nifty to higher to next trend line resistance at 5570 levels, and trend line support for nifty comes at 5410, 20DEMA at 5399 and box support at 5351. 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 5454 - 5465 - 5490 - 5509 SL - 5447
Sell Nifty below 5434 - 5427 - 5409 - 5383 SL - 5452

INTRADAY TRADE
Reliance Industries: Buy above 1007 for targets of 1009, 1012, 1016 SL 1000
Reliance Industries: Sell below 997 for targets of 996, 994, 987 SL 1005
ABB: Buy above 803 for targets of 807, 816 SL 795
Nagajuna Fertilizers: Buy above 30.8 for targets of 31.3, 32 SL 30.1

SCORE SHEET
Autoind: Buy above 173 for targets of 175, 178 SL 170.9 : Target 177.6 achieved
DCM Ltd.: Buy above 83 for targets of 84, 86 SL 80.2 : Target 87.75 achieved

POSITIONAL TRADE
Timken: Buy above 162 for target of 176 SL 158 (One Week)
Andhra Bank: Buy above 147 for target of 168 SL 138 (Positional Buy 3-6 months)

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