Market outlook for 13/08/10

Nifty closed down 4.15 points (0.08%) at 5416.45 whilst Nifty August Future closed at 5419.70 premium of 3.25 points.

• FII bought in Cash (Net buy 218.19 Crore)
• FII bought in index options but sold in index futures & stock futures (Net buy 812.58 Crore)
• DII sold in Cash (Net sell 656.05 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 546:781

NIFTY TECHNICAL

Current Spot: 5416.45
Pivot: 5407
5DEMA: 5435
10DEMA: 5434
20DEMA: 5414
50DEMA: 5334
RSI (7 days): 45.63
Parabolic SAR: 5492 (System Short)
Supports: 5382 - 5348
Resistance: 5441 - 5465

MP Values Spot: VAH - 5415, POC - 5393, VAL - 5387
MP Values Futures: VAH - 5419, POC - 5395, VAL - 5387
MP Values Bank Nifty Futures: VAH - 10538, POC - 10380, VAL - 10344

OVERALL VIEW

The Indian markets started the day on a weak note on the back of negative cues from the global markets, but gathered momentum and erased most of its loses during midsession. The markets tumbled once again after the government released industrial production data for June 2010. The data showed that industrial output rose 7.1 per cent in the month of June 2010 as compared to a revised 11.3 per cent growth in May 2010. On the back of better performance from banking stocks Nifty ultimately closed at 5416.45
Nifty closed below all moving averages, but just above Day LEMA which is bearish in nature. (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 5450; break of 5395 will be highly negative for the index and can take it all the way down to 5350. The trend line resistance is placed at 5450; break of 5450 will be highly bullish and will take Nifty to higher level of 5490 and above.

TARGET NIFTY
Buy Nifty above 5424 - 5444 - 5471 - 5512 SL - 5402
Sell Nifty below 5397 - 5381 - 5340 - 5313 SL - 5408

INTRADAY TRADE
Reliance Industries: Buy above 980 for targets of 982, 986, 991 SL 973
Reliance Industries: Sell below 968 for targets of 966, 962, 956 SL 978
HindPetro: Buy above 492 for targets of 496, 502 SL 482
UCO Bank: Buy above 102 for targets of 103, 105 SL 99.5

SCORE SHEET
PetroNet: Buy above 109 for targets of 111, 113 SL 107: Trade not executed
GIC Housing: Buy above 141 for targets of 143, 146 SL 138: Target 146.80 achieved

POSITIONAL TRADE
Timken: Buy above 175 for target of 193 SL 169 (One Month)
Omnitech: Buy above 256 for target of 283 SL 247 (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