Market outlook for 19/08/10

Nifty closed up 65 points (1.20%) at 5479.15 whilst Nifty August Future closed at 5483.05 premium of 3.9 points.

• FII bought in Cash (Net buy 674.52 Crore)
• FII bought in index futures, index options and stock futures (Net buy 813.86 Crore)
• DII sold in Cash (Net sell 113.51 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: 5500 and 5400.
• Advance Decline for the day was 793:540

NIFTY TECHNICAL

Current Spot: 5479.15
Pivot: 5465
5DEMA: 5444
10DEMA: 5439
20DEMA: 5423
50DEMA: 5344
RSI (7 days): 61.93
Parabolic SAR: 5372
Supports: 5442 - 5404
Resistance: 5502 - 5525

MP Values Spot: VAH - 5453, POC - 5442, VAL - 5429
MP Values Futures: VAH - 5446, POC - 5431, VAL - 5420
MP Values Bank Nifty Futures: VAH - 10816, POC - 10803, VAL - 10746

OVERALL VIEW

The key benchmark indices ended the day's trade on a bullish note after a significant rally in the final hours as the buying interest emerged across IT, FMCG, Metal, Tech, Auto and Bankex space. The domestic markets belled the session with positive note tracking optimistic cues from global arena. During the late afternoon session, the market sentiments were boosted, with data showing sustained buying by foreign funds. The domestic equities continued to rise and ended its session on a positive note.
Nifty closed above all moving averages, at 5479 signifying bullish undercurrent. (See Tech Table for details). RSI has given an uptrend, just above 60 levels; Stochastic is in uptrend with positive crossover, the volume was better than normal.
Nifty today opened flat to positive and traded in a small range of 20 points for the better part of the day, only late buying near the close of the day lifted it to the high of the day. It closed near the high of the day just below the trend line. The trend line resistance is now placed at 5505 and 5520, and the channel support at 5350. Trade with caution as we are heading towards unchartered territories.

TARGET NIFTY
Buy Nifty above 5487 - 5509 - 5538 - 5585 SL - 5462
Sell Nifty below 5457 - 5439 - 5392 - 5363 SL - 5468

INTRADAY TRADE
Reliance Industries: Buy above 971 for targets of 973, 982, 991 SL 964
Reliance Industries: Sell below 960 for targets of 958, 950, 940 SL 969
Saregama: Buy above 133 for targets of 135, 138 SL 130
Andhra Bank: Buy above 166 for targets of 168, 171 SL 163

SCORE SHEET
Fortis: Buy above 162.5 for targets of 164, 167 SL 159: Target 166.40 achieved
Vijaya Bank: Buy above 84 for targets of 85.5, 87 SL 82: Target 87.85 achieved

POSITIONAL TRADE
GMRInfra: Buy above 63 for target of 69 SL 61 (One Month)
DeepakFert: Buy above 162 for target of 172 SL 158 (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