Market outlook for 26/08/10

Nifty closed down 42.75 points (0.78%) at 5462.35 whilst Nifty August Future closed at 5469.85 premium of 7.5 points.

• FII sold in Cash (Net sell 364.96 Crore)
• FII bought in index options but sold index futures and stock futures (Net buy 1376.14 Crore)
• DII sold in Cash (Net sell 266.77 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 263:1095

NIFTY TECHNICAL

Current Spot: 5462.35
Pivot: 5474
5DEMA: 5493
10DEMA: 5483
20DEMA: 5458
50DEMA: 5359
RSI (7 days): 46.44
Parabolic SAR: 5417
Supports: 5441 - 5420
Resistance: 5495 - 5527

Nifty VWAP: 5482.40
Bank Nifty VWAP: 10972.76
MP Values Spot: VAH - 5490, POC - 5482, VAL - 5468
MP Values Futures: VAH - 5496, POC - 5482, VAL - 5477
MP Values Bank Nifty Futures: VAH - 11005, POC - 10976, VAL - 10960

OVERALL VIEW

Nifty closed below all moving averages at 5462, signifying bearish undertone. (See Tech Table for details). Any close below 5450 week 5EMA will be highly bearish. RSI is in downtrend from overbought levels below the 50 mark; stochastic has given a negative crossover and is in downtrend, the volume seem to be picking up with each negative day.
The trend line resistance is now placed at 5580, and the channel resistance at 5505 and the trend line support at 5440. Traders who have shorted at the break of 5480 can keep stop loss of 5520 on closing basis.

TARGET NIFTY
Buy Nifty above 5482 - 5492 - 5517 - 5534 SL - 5475
Sell Nifty below 5462 - 5456 - 5439 - 5414 SL - 5481

INTRADAY TRADE
Reliance Industries: Buy above 974 for targets of 976, 980, 985 SL 968
Reliance Industries: Sell below 963 for targets of 962, 960, 953 SL 973
Patni: Buy above 543 for targets of 547, 552 SL 537
RuchiSoya: Buy above 127.5 for targets of 128.5, 131 SL 125

SCORE SHEET
Bajaj Elect Ltd.: Buy above 289 for targets of 294, 299 SL 283: Target 306.40 achieved
PTC: Buy above 124.5 for targets of 126, 128 SL 123: Target 125.90 achieved

POSITIONAL TRADE
Raymond: Buy above 379 for target of 418 SL 374 (One Month)
TV18: Buy above 91 for target of 98 SL 89 (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