Market outlook for 11/08/10

Nifty closed down 24.45 points (0.46%) at 5460.70 whilst Nifty August Future closed at 5460.95 premium of 0.25 points.

• FII bought in Cash (Net buy 599.33 Crore)
• FII bought in index options and stock futures but sold in index futures (Net buy 149.87 Crore)
• DII sold in Cash (Net sell 540.67 Crore)
• US market is trading in RED.
• Global cues are flat to negative.
• 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 481:853

NIFTY TECHNICAL

Current Spot: 5460.70
Pivot: 5463
5DEMA: 5457
10DEMA: 5442
20DEMA: 5413
50DEMA: 5330
RSI (7 days): 58.18
Parabolic SAR: 5371
Supports: 5443 - 5425
Resistance: 5481 - 5502

MP Values Spot: VAH - 5475, POC - 5462, VAL - 5449
MP Values Futures: VAH - 5471, POC - 5454, VAL - 5453
MP Values Bank Nifty Futures: VAH - 10498, POC - 10479, VAL - 10464

OVERALL VIEW

The domestic benchmark indices closed on a negative note though it managed to cut some of its losses in the final hours of the session. The sentiments across the board was bearish following the weakness in the global markets.
After a week opening, the leading Indian indices gradually went up to the channel resistance at 5490 and broke down from there to close the session at 5461. Nifty closed below Day HEMA of 5476 but above all moving averages confirming caution at higher levels. (See Tech Table for details). RSI has given a downtick from overbought level; Stochastic has given negative crossover, the volume was better than normal.
The trend line resistance is placed at 5490; break of 5490 will be highly bullish and will take Nifty to higher levels of 5520 and above, support for nifty comes 5440 and 20DEMA at 5415. Trade light at higher levels and wait for any breakout from trend line resistance to take new position.

TARGET NIFTY
Buy Nifty above 5465 - 5474 - 5591 - 5509 SL - 5456
Sell Nifty below 5450 - 5445 - 5427 - 5410 SL - 5461

INTRADAY TRADE
Reliance Industries: Buy above 997 for targets of 999, 1005, 1012 SL 990
Reliance Industries: Sell below 984 for targets of 982, 977, 968 SL 995
IBReal Est: Buy above 187 for targets of 190, 195 SL 182.5
Adani Power: Buy above 141.5 for targets of 142.5, 144 SL 139

SCORE SHEET
Omnitech: Buy above 249 for targets of 252, 257 SL 243: Call did not get activated
GIC Housing: Buy above 135 for targets of 138, 142 SL 130.5: Target 139.6 achieved

POSITIONAL TRADE
First Leasing Co: Buy above 75.5 for target of 84 SL 73 (One Month)
Ramsarup: Buy above 116 for target of 122 SL 113 (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