Market outlook for 16/08/10

Nifty closed up 35.65 points (0.66%) at 5452.10 whilst Nifty August Future closed at 5456.45 premium of 4.35 points.

• FII bought in Cash (Net buy 50.15 Crore)
• FII bought in index futures and index options but sold in stock futures (Net buy 1215.23 Crore)
• DII bought in Cash (Net buy 33.38 Crore)
• US market closed flat to negative.
• Global cues are flat.
• SGX nifty is flat as of now.
• Most Active Nifty August Call Option: 5400 and 5500.
• Most Active Nifty July Put Options: 5500 and 5400.
• Advance Decline for the day was 726:609

NIFTY TECHNICAL

Current Spot: 5452.10
Pivot: 5449
5DEMA: 5441
10DEMA: 5438
20DEMA: 5417
50DEMA: 5334
RSI (7 days): 55.9
Parabolic SAR: 5490
Supports: 5422 - 5393
Resistance: 5479 - 5506

MP Values Spot: VAH - 5466, POC - 5447, VAL - 5442
MP Values Futures: VAH - 5471, POC - 5462, VAL - 5443
MP Values Bank Nifty Futures: VAH - 10740, POC - 10702, VAL - 10688

OVERALL VIEW

Buying interest across the pivotal led the domestic bourses to close the day's trade with positive note. The up move was led by Realty, CD and Bankex space. Throughout the day, optimistic cues from the global markets kept the domestic markets to float above the base line.
Nifty closed above all moving averages, but just below Day HEMA which is sign of sellers at higher levels. (See Tech Table for details). RSI is has given an uptick and just above 50 level; Stochastic is on the verge of giving cross over, the volume was better than normal.
Nifty has broken the trend line support at 5440 a few days ago, now the support has become resistance and stands at 5475 and breach of that will be highly bullish and can take nifty to 5500, 5520 and above. Downside break has potential target of 5420 and 5380.

TARGET NIFTY
Buy Nifty above 5461 - 5481 - 5508 - 5540 SL - 5449
Sell Nifty below 5444 - 5427 - 5396 - 5369 SL - 5454

SWING TRAGE
Biocon (CMP 342)

On the daily chart, the stock has given an upside breakout in Thursday’s trading session. It suggests that the consolidation range is about to end and may reverse into an uptrend. On Friday, the stock rallied by over 2% confirming the bullish set up. Moreover, the stock has given a close above its key moving averages on expanding volumes. Thursday’s up move in the stock was supported by spurt in volumes which almost tripled than that of its 10-day average.
The breakout was also confirmed on weekly chart as earlier peak of 336 was surpassed with formation of higher top and higher bottom on weekly candlestick chart. We advise buying the stock between 339-344 with stop loss of 330 for a target of 365-370.

INTRADAY TRADE
Reliance Industries: Buy above 986 for targets of 989, 1002, 1013 SL 979
Reliance Industries: Sell below 974 for targets of 971, 961, 949 SL 984
Axis Bank: Buy above 1328.2 for targets of 1335, 1343 SL 1319
Dabur: Buy above 201 for targets of 202.8, 204 SL 199.5

SCORE SHEET
HindPetro: Buy above 492 for targets of 496, 502 SL 482: Target 506.80 achieved
UCO Bank: Buy above 102 for targets of 103, 105 SL 99.5: Target 104.10 achieved

POSITIONAL TRADE
JP Associates: Buy above 121 for target of 132 SL 117 (One Month)
Sterlite: Buy above 161.8 for target of 171 SL 157 (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