Market outlook for 27/08/10

Nifty closed up 15.55 points (0.28%) at 5477.90 whilst Nifty September Future closed at 5471.95 discount of 5.95 points.

• FII sold in Cash (Net sell 276.62 Crore)
• FII bought in index options but sold index futures and stock futures (Net buy 353.05 Crore)
• DII bought in Cash (Net buy 38.93 Crore)
• US market is trading flat.
• Global cues are flat to positive.
• SGX nifty is flat as of now.
• Most Active Nifty September Call Option: 5500 and 5600.
• Most Active Nifty September Put Options: 5500 and 5400.
• Advance Decline for the day was 557:772

NIFTY TECHNICAL

Current Spot: 5477.90
Pivot: 5473
5DEMA: 5488
10DEMA: 5482
20DEMA: 5460
50DEMA: 5371
RSI (7 days): 50.48
Parabolic SAR: 5428
Supports: 5460 - 5441
Resistance: 5491 - 5505

Nifty VWAP: 5476.98
Bank Nifty VWAP: 10973.55
MP Values Spot: VAH - 5482, POC - 5473, VAL - 5467
MP Values Futures: VAH - 5488, POC - 5480, VAL - 5471
MP Values Bank Nifty Futures: VAH - 10998, POC - 10970, VAL - 10949

OVERALL VIEW

Nifty closed below all moving averages except day LEMA (5468) at 5478, signifying buying coming at lower levels. (See Tech Table for details). Any close below 5458 week 5EMA will be highly bearish. RSI is in downtrend from overbought levels; stochastic has given a negative crossover and is in downtrend, the volume was more than average.
The trend line resistance is now placed at 5570, and the channel resistance at 5507 and the trend line support at 5450. Trade long only till the trend line support of 5450 is intact.

TARGET NIFTY
Buy Nifty above 5482 - 5489 - 5503 - 5520 SL - 5472
Sell Nifty below 5467 - 5464 - 5447 - 5433 SL - 5478

INTRADAY TRADE
Reliance Industries: Buy above 966 for targets of 969, 977, 984 SL 959
Reliance Industries: Sell below 952 for targets of 950, 946, 938 SL 964
Crompgreav: Buy above 308 for targets of 311, 315 SL 302
Finpipe: Buy above 102 for targets of 104.5, 107 SL 101.2

SCORE SHEET
Patni: Buy above 543 for targets of 547, 552 SL 537: Target 554.80 achieved
RuchiSoya: Buy above 127.5 for targets of 128.5, 131 SL 125: Target 132.50 achieved

POSITIONAL TRADE
GTOffshore: Buy above 395 for target of 432 SL 374 (One Month)
SCI: Buy above 161 for target of 172 SL 156 (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