Market outlook for 23/08/10

Nifty closed down 9.55 points (0.17%) at 5530.65 whilst Nifty August Future closed at 5522.55 discount of 8.1 points.

• FII bought in Cash (Net buy 662.86 Crore)
• FII bought in index options but sold index futures and stock futures (Net buy 787.84 Crore)
• DII sold in Cash (Net sell 102.16 Crore)
• US market closed in Red.
• Global cues are flat to negative.
• SGX nifty is flat 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 584:742

NIFTY TECHNICAL

Current Spot: 5530.65
Pivot: 5530
5DEMA: 5494
10DEMA: 5471
20DEMA: 5443
50DEMA: 5350
RSI (7 days): 68.36
Parabolic SAR: 5383
Supports: 5514 - 5498
Resistance: 5546 – 5562
Nifty VWAP: 5521.05
Bank Nifty VWAP: 11034.77

MP Values Spot: VAH - 5536, POC - 5529, VAL - 5524
MP Values Futures: VAH - 5527, POC - 5520, VAL - 5516
MP Values Bank Nifty Futures: VAH - 11055, POC - 11027, VAL - 11003

OVERALL VIEW

The domestic key benchmark indices ended the volatile trade on a negative note on selling pressures across the selective indices. The investors turned a bit cautious in booking fresh positions due to lack of any favoring cues from the global as well as domestic markets. Today the domestic markets opened the session with a negative note and continued to trade in the negative territory for most part of the day. However, two intraday day recovery was witnessed but that was short lived due to profit booking at higher levels.
Nifty closed above all moving averages, at 5531 signifying strong bullish undercurrent. (See Tech Table for details). RSI is in uptrend, just near 70 levels; Stochastic is in uptrend with positive crossover, the volume was normal.
The trend line resistance is now placed at 5570, and the channel support at 5500. All longs should be hedged at these levels.

TARGET NIFTY
Buy Nifty above 5527 - 5535 - 5549 - 5564 SL - 5519
Sell Nifty below 5514 - 5510 - 5495 - 5480 SL - 5525

INTRADAY TRADE
Reliance Industries: Buy above 991 for targets of 995, 1003, 1014 SL 982
Reliance Industries: Sell below 980 for targets of 976, 966, 958 SL 987
ABB: Buy above 774.7 for targets of 781, 788 SL 761
Sterling Biotech: Buy above 108.5 for targets of 110, 112 SL 106.5

SCORE SHEET
HDFC: Buy above 648 for targets of 653, 662 SL 637: Trade not initiated
Aban: Buy above 839 for targets of 848, 862 SL 819: : Target 848.80 achieved

POSITIONAL TRADE
Lakshvilas: Buy above 126 for target of 139 SL 121 (One Month)
Atul: Buy above 136 for target of 144 SL 133 (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