Market outlook for 07/09/10

Nifty closed up 97.55 points (1.78%) at 5576.95 whilst Nifty September Future closed at 5577.00 premium of 0.05 points.

• FII bought in Cash (Net buy 946.53 Crore)
• FII bought in index future, stock future and index option (Net buy 3859.96 Crore)
• DII bought in Cash (Net buy 392.13 Crore)
• US market was closed.
• Global cues are flat to positive.
• SGX nifty is flat to positive 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 1036:308

NIFTY TECHNICAL

Current Spot: 5576.95
Pivot: 5557
5DEMA: 5503
10DEMA: 5484
20DEMA: 5467
50DEMA: 5400
RSI (7 days): 71.74
Parabolic SAR: 5349
Supports: 5524 - 5472
Resistance: 5609 - 5642

Nifty VWAP: 5552.88
Bank Nifty VWAP: 11148.46
MP Values Spot: VAH - 5580, POC - 5557, VAL - 5534
MP Values Futures: VAH - 5580, POC - 5576, VAL - 5548
MP Values Bank Nifty Futures: VAH - 11232, POC - 11220, VAL - 11130

OVERALL VIEW

Nifty closed at 5577, above all daily moving averages, and also above week HEMA. This generally signals bullish contention. As said yesterday gap up over 5510 ended the sideways movement of Nifty and ended the day making a new high for the year. (See Tech Table for details). Daily RSI is hovering just above 70 level, stochastic has given a positive crossover and is now in overbought territory, the volume was very good.
Nifty today broke over the trend line resistance of 5520 to close strong at 5577. Now Nifty has to cross another long term trend line resistance at 5600 for major upside. The support for nifty is near 5485, the previous resistance level.

TARGET NIFTY
Buy Nifty above 5581 - 5605 - 5636 - 5686 SL - 5555
Sell Nifty below 5550 - 5530 - 5480 - 5449 SL - 5561

INTRADAY TRADE
Reliance Industries: Buy above 955 for targets of 961, 967, 974 SL 942
Reliance Industries: Sell below 939 for targets of 935, 931, 924 SL 947
Ceatltd: Buy above 192 for targets of 199, 208 SL 183
MVL: Buy above 102 for targets of 104, 107 SL 98.5

SCORE SHEET
Ktkbank: Buy above 181 for targets of 184, 188 SL 177: Target 181.50 achieved
Hoteleela: Buy above 55 for targets of 56, 57 SL 54.1: Target 57.35 achieved

POSITIONAL TRADE
Raymond: Buy above 393 for target of 420 SL 377 (One Week)
KFA: Buy above 69 for target of 77 SL 67 (One Month)

 

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