Market outlook for 18/08/10

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S&P Wealth Creators

  

Nifty closed down 4.15 points (0.08%) at 5414.15 whilst Nifty August Future closed at 5424.80 premium of 10.65 points.

• FII bought in Cash (Net buy 404.09 Crore)
• FII bought in index futures and index options but sold in stock futures (Net buy 1053.52 Crore)
• DII sold in Cash (Net sell 400.12 Crore)
• US market is trading positive.
• Global cues are flat to positive.
• SGX nifty is 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 629:701

NIFTY TECHNICAL

Current Spot: 5414.15
Pivot: 5422
5DEMA: 5427
10DEMA: 5431
20DEMA: 5417
50DEMA: 5338
RSI (7 days): 45.12
Parabolic SAR: 5485
Supports: 5401 - 5387
Resistance: 5436 - 5457

MP Values Spot: VAH - 5436, POC - 5426, VAL - 5419
MP Values Futures: VAH - 5436, POC - 5431, VAL - 5419
MP Values Bank Nifty Futures: VAH - 10777, POC - 10752, VAL - 10736

OVERALL VIEW

Today, the leading Indian indices closed the volatile trade with marginal losses, as selling interest emerged at the final hours of the trading session. IT, CG and Power were on the seller's radar, while Bankex and Realty took a ride on bull.
Nifty closed below all moving averages, except Day LEMA at 5408 which is sign of impending correction. (See Tech Table for details). RSI is in downtrend, just below 50 level; Stochastic is in downtrend with negative crossover, the volume was better than normal.
Nifty today opened strong but got resisted near the pivot and closed weak at 5414, just below 20DEMA at 5417. The trend line resistance is now placed at 5480 and the channel support at 5350. Trade hedged long till the channel support of 5350 is not taken out with volume.

TARGET NIFTY
Buy Nifty above 5430 - 5440 - 5457 - 5474 SL - 5424
Sell Nifty below 5417 - 5411 - 5395 - 5378 SL - 5429

INTRADAY TRADE
Reliance Industries: Buy above 980 for targets of 983, 988, 993 SL 973
Reliance Industries: Sell below 966 for targets of 964, 961, 953 SL 978
Fortis: Buy above 162.5 for targets of 164, 167 SL 159
Vijaya Bank: Buy above 84 for targets of 85.5, 87 SL 82

SCORE SHEET
UCO Bank: Buy above 108.5 for targets of 109.5, 111 SL 106.5: Target 113.70 achieved

POSITIONAL TRADE
Havells: Buy above 816 for target of 870 SL 790 (One Month)
HindMotor: Buy above 28 for target of 31.5 SL 26.7 (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