Market outlook for 20/08/10

Nifty closed up 61.05 points (1.11%) at 5540.20 whilst Nifty August Future closed at 5527.70 discount of 12.5 points.

• FII bought in Cash (Net buy 821.18 Crore)
• FII bought in index futures, index options and stock futures (Net buy 3934.82 Crore)
• DII bought in Cash (Net buy 215.09 Crore)
• US market is trading negative.
• Global cues are flat to negative.
• SGX nifty is negative as of now.
• Most Active Nifty August Call Option: 5500 and 5600.
• Most Active Nifty July Put Options: 5500 and 5400.
• Advance Decline for the day was 829:510

NIFTY TECHNICAL

Current Spot: 5540.20
Pivot: 5526
5DEMA: 5476
10DEMA: 5458
20DEMA: 5434
50DEMA: 5342
RSI (7 days): 71.50
Parabolic SAR: 5376
Supports: 5506 - 5473
Resistance: 5559 - 5579

MP Values Spot: VAH - 5540, POC - 5523, VAL - 5515
MP Values Futures: VAH - 5528, POC - 5513, VAL - 5508
MP Values Bank Nifty Futures: VAH - 11035, POC - 10982, VAL - 10910

OVERALL VIEW

The key benchmark indices ended the bullish trade on a strong note on the back of heavy buying across the sectoral indices. The sentiments across the board was upbeat since the initial bell tracking the firm Asian markets. Most buying was witnessed across Bankex (up 1.92 per cent) along with FMCG (up 1.63 per cent), Metal (up 0.97 per cent) and Capital Goods (up 0.85 per cent).
Nifty closed above all moving averages, at 5540 signifying strong bullish undercurrent. (See Tech Table for details). RSI is in uptrend, just above 70 levels; Stochastic is in uptrend with positive crossover, the volume was better than normal.
Nifty today opened flat to positive and climbed steadily towards the highs of the day and closed near the top. The trend line resistance is now placed at 5570, and the channel support at 5500. Trade with caution as we are heading towards unchartered territories.

TARGET NIFTY
Buy Nifty above 5532 - 5543 - 5561 - 5591 SL - 5513
Sell Nifty below 5507 - 5501 - 5471 - 5453 SL - 5518

INTRADAY TRADE
Reliance Industries: Buy above 980 for targets of 984, 992, 1001 SL 973
Reliance Industries: Sell below 970 for targets of 968, 959, 947 SL 978
HDFC: Buy above 648 for targets of 653, 662 SL 637
Aban: Buy above 839 for targets of 848, 862 SL 819

SCORE SHEET
Saregama: Buy above 133 for targets of 135, 138 SL 130: Target 145.50 achieved
Andhra Bank: Buy above 166 for targets of 168, 171 SL 163: SL Hit

POSITIONAL TRADE
Autoind: Buy above 216 for target of 240 SL 205 (One Month)
TV-18: Buy above 89 for target of 93 SL 87 (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