Market outlook for 10/08/10

Nifty closed up 46.90 points (0.86%) at 5486.15 whilst Nifty August Future closed at 5482 discount of 4.15 points.

• FII bought in Cash (Net buy 522.12 Crore)
• FII bought in index futures, index options and stock futures (Net buy 673.70 Crore)
• DII sold in Cash (Net sell 45.51 Crore)
• US market ended 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 939:390

NIFTY TECHNICAL

Current Spot: 5486.15
Pivot: 5472
5DEMA: 5455
10DEMA: 5438
20DEMA: 5408
50DEMA: 5324
RSI (7 days): 67.14
Parabolic SAR: 5363
Supports: 5451 - 5416
Resistance: 5507 - 5527

MP Values Spot: VAH - 5479, POC - 5464, VAL - 5453
MP Values Futures: VAH - 5477, POC - 5461, VAL - 5452
MP Values Bank Nifty Futures: VAH - 10487, POC - 10446, VAL - 10432

OVERALL VIEW

Buying interest across the leading pivotal made the domestic markets to close the day's trade on bullish note. During the afternoon trade the key benchmark indices spurted further as positive European stocks cleared the road ahead. On the sectoral front - Realty, CD and Metal stocks were on the buyer's side, while Oil&Gas and HC are on the seller's radar.
After a flat opening, the leading Indian indices gradually went upto the high of the day during the afternoon session at 5492 and closed at 5486. Nifty closed above all moving averages confirming bullishness, follow up action is needed. (See Tech Table for details). RSI has given an uptick and is in overbought level; Stochastic has given negative crossover, the volume was normal.
Nifty today broke out from the Box Range and closed above it but just below the trend line resistance at 5490; break of 5490 will be highly bullish and will take Nifty to higher levels of 5520 and above, support for nifty comes 5455 and 20DEMA at 5408. Trade light at higher levels and wait for any breakout from trend line resistance to take new position.

TARGET NIFTY
Buy Nifty above 5486 - 5499 - 5519 - 5552 SL - 5467
Sell Nifty below 5461 - 5452 - 5419 - 5399 SL - 5472

INTRADAY TRADE
Reliance Industries: Buy above 1002 for targets of 1004, 1009, 1014 SL 995
Reliance Industries: Sell below 990 for targets of 988, 985, 977 SL 1000
Omnitech: Buy above 249 for targets of 252, 257 SL 243
GIC Housing: Buy above 135 for targets of 138, 142 SL 130.5

SCORE SHEET
ABB: Buy above 803 for targets of 807, 816 SL 795: Target 815.3 achieved
Nagajuna Fertilizers: Buy above 30.8 for targets of 31.3, 32 SL 30.1: Target 31.6 achieved

POSITIONAL TRADE
EssarShip: Buy above 129 for target of 152 SL 123 (One Month)
Ansalapi: Buy above 96 for target of 101 SL 92.8 (One Week)

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