Market outlook for 25/08/10

Nifty closed down 38.4 points (0.69%) at 5505.10 whilst Nifty August Future closed at 5510.35 premium of 5.25 points.

• FII bought in Cash (Net buy 191.05 Crore)
• FII bought in index options and stock futures but sold index futures (Net buy 1469.72 Crore)
• DII sold in Cash (Net sell 689.54 Crore)
• US market is trading in Red.
• 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 425:915

NIFTY TECHNICAL

Current Spot: 5505.10
Pivot: 5513
5DEMA: 5509
10DEMA: 5488
20DEMA: 5458
50DEMA: 5364
RSI (7 days): 57.49
Parabolic SAR: 5405
Supports: 5480 - 5455
Resistance: 5538 - 5571

Nifty VWAP: 5506.71
Bank Nifty VWAP: 11021.36
MP Values Spot: VAH - 5520, POC - 5505, VAL - 5495
MP Values Futures: VAH - 5517, POC - 5501, VAL - 5494
MP Values Bank Nifty Futures: VAH - 11041, POC - 11025, VAL - 10996

OVERALL VIEW

Nifty closed below all moving averages except day low EMA at 5485, signifying correction to up move. (See Tech Table for details). Any close below day low EMA and week 5EMA at 5467 will be highly bearish. RSI has given a downtick from overbought status; stochastic has given a negative crossover with downward tick, the volume was above normal.
The trend line resistance is now placed at 5580, and the channel support at 5500 and the trend line support at 5440. Traders are requested to wait for break of 5480 on closing basis to take short positional shorts with stop loss of 5549 on nifty future.

TARGET NIFTY
Buy Nifty above 5514 - 5537 - 5567 - 5597 SL - 5507
Sell Nifty below 5502 - 5483 - 5453 - 5423 SL - 5513

INTRADAY TRADE
Reliance Industries: Buy above 978 for targets of 980, 985, 991 SL 971
Reliance Industries: Sell below 968 for targets of 966, 962, 955 SL 976
Bajaj Elect Ltd.: Buy above 289 for targets of 294, 299 SL 283
PTC: Buy above 124.5 for targets of 126, 128 SL 123

SCORE SHEET
Exideind: Buy above 153.5 for targets of 155, 158 SL 150.5: Target 157.90 achieved
LITL: Buy above 74.5 for targets of 75.3, 77 SL 72.5: SL Hit

POSITIONAL TRADE
Indswftlab: Buy above 116 for target of 129 SL 111 (One Month)
Hanung: Buy above 280 for target of 305 SL 273 (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