Market outlook for 12/08/10

Nifty closed down 40.1 points (0.73%) at 5420.60 whilst Nifty August Future closed at 5411.90 discount of 8.7 points.

• FII sold in Cash (Net sell 85.81 Crore)
• FII bought in index options but sold in index futures & stock futures (Net buy 521.58 Crore)
• DII bought in Cash (Net buy 23.50 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 479:861

NIFTY TECHNICAL

Current Spot: 5420.60
Pivot: 5436
5DEMA: 5445
10DEMA: 5438
20DEMA: 5413
50DEMA: 5329
RSI (7 days): 46.71
Parabolic SAR: 5378
Supports: 5397 - 5373
Resistance: 5459 - 5498

MP Values Spot: VAH - 5460, POC - 5444, VAL - 5430
MP Values Futures: VAH - 5452, POC - 5436, VAL - 5424
MP Values Bank Nifty Futures: VAH - 10485, POC - 10456, VAL - 10440

OVERALL VIEW

Profit booking across the selective pivotal led the domestic bourses to end the day's trade on bearish note. Selling interest intensified across Realty, Bankex, HC, IT and Technology space. Triggered by lower Asian stocks, the domestic markets belled the session on a negative note but soon managed to recover and marked the fresh intra-day high at 5,474.60 as buying interest emerged at the lower level. However, gap-down start for the European shares along with negative cues from Asian peers triggered fresh selling pressure in late-afternoon trades.
After a flat opening, Nifty got resisted near channel resistance at 5490 and broke down from there to close the session at 5421. Nifty closed below all moving averages confirming bearishness. (See Tech Table for details). RSI is in down trend below 50 level; Stochastic is also in downtrend, the volume was better than normal.
Nifty has broken the trend line support at 5440; break of 5415 will be highly negative for the index and can take it all the way down to 5350. 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.

TARGET NIFTY
Buy Nifty above 5432 - 5449 - 5489 - 5513 SL - 5425
Sell Nifty below 5404 - 5391 - 5367 - 5327 SL - 5431

INTRADAY TRADE
Reliance Industries: Buy above 991 for targets of 993, 998, 1004 SL 984
Reliance Industries: Sell below 978 for targets of 976, 973, 965 SL 989
PetroNet: Buy above 109 for targets of 111, 113 SL 107
GIC Housing: Buy above 141 for targets of 143, 146 SL 138

SCORE SHEET
IBReal Est: Buy above 187 for targets of 190, 195 SL 182.5: First Target 189.30 achieved
Adani Power: Buy above 141.5 for targets of 142.5, 144 SL 139: Target 144.60 achieved

POSITIONAL TRADE
Hitachihom: Buy above 365 for target of 405 SL 351 (One Month)
Tilaknagar Ind.: Buy above 238 for target of 260 SL 233 (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