Market outlook for 12/04/10

The domestic market today closed with higher note on the back of positive global market. The key benchmark indices triggered today's session with positive note tracking favourable cues from U.S and Asian Markets. Throughout the day, the market remained strong backed by the favourable cues from the global market, which led the market to march upward to hit a fresh intraday high in afternoon trade. Positive European markets also supported the market to gain further and closed the day's trade with positive note. However, the investors remained cautious ahead of the announcement of key policy rates, to be made by RBI on 20th April 2010.
Nifty closed the day at 5361.75 up by 57.30 points. Nifty April future closed at 5366.1, premium of 4.35 points.

• FII bought in Cash (Net buy 233.09 Crore)
• FII bought in index futures, index options, but sold in stock futures (Net buy 1209.59 Crore)
• DII sold in Cash (Net sell 66.46 Crore)
• US market ended in GREEN.
• Global cues are flat to Positive.
• SGX nifty is Positive as of now.
• Most Active April Nifty Call Option: 5400 and 5300.
• Most Active March Nifty Put Options: 5200 and 5300.
• Put Call ratio stands at 1.20
• Advance Decline for the day was 883:410

Over all view
On 9th April, ADX suggests that trend is tiring, CCI, CMF, Force Index, PVT, RSI are pointing upward, while MACD is almost neutral & Stochastic as well as MFI are flat to negative. FIIs bought on 9th April too.
From now on, 5280 holds the key. Any day if we go below this level and sustain there for at least 4-5 minutes, then it may be a problem for bulls. On the other hand, if we remain above 5310-5320, then most probably we are going to see 5400-5450-5485 levels (plus/minus 20 points), where the shorters may become active. Finally, if we close 2-3 days continuously above 5420 level, then we may even touch 5700 in coming days.

NIFTY Technical
Current Spot: 5361.75
Pivot: 5353
3DEMA: 5347
7DEMA: 5330
20DEMA: 5254
RSI (7 days): 64.61
Parabolic SAR: 5263
Supports: 5328 - 5294
Resistance: 5387 - 5411

Target Nifty
Buy Nifty above 5369 - 5397 - 5433 - 5479 SL - 5351
Sell Nifty below 5346 - 5321 - 5275 - 5239 SL - 5356

Option Open Interest

On Friday there was a huge Open Interest buildup in 5300PE with strong addition in 5200, 5400PE whereas 5300CE shed huge Open Interest indicating that Option writers are playing for 5300 - 5400 range for time being.

Option & Futures Call
Buy Nifty 5300PE above 62.7 for targets of 77.5, 100.1 SL - 56.9
Buy Nifty 5400CE above 58.4 for targets of 70.4, 82.6 SL - 52.1

Stock Ideas for the Day
Reliance Industries: Buy above 1128 for targets of 1132, 1141, 1154 SL of 1118
Reliance Industries: Sell below 1116 for targets of 1113, 1101, 1092 SL of 1092
Havells: Buy above 642 for targets of 649, 658 SL of 630
PVR Ltd.: Buy above 169 for targets of 173, 177 SL of 165
MRPL: Buy above 83.5 for targets of 84.5, 86 SL of 81.7

Positional Call
South Asian Petrochem Ltd.: Buy above 12.9 for target of 14.1 SL of 12.5 (One Week)
Alembic: Buy above 53.1 for target of 58 SL of 52 (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

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