Market outlook for 13/04/10

Selling pressures across some sectoral indices following a row between regulators on oversight of unit linked insurance products or Ulips has made the market end the volatile trade on a negative note. The Asian market also opened in mix with no positive signal for the domestic investors which kept the market to remain volatile for most of the session. While the European market opened positive after euro zone finance ministers approved an emergency aid mechanism for Greece, and with UBS gaining after it said first-quarter profit surged. Back home the market gained momentum following the positive European market but the upbeat mood was short lived and failed to boost the investor's sentiment who booked profit in the final hour of the session.  Among the sectoral indices the top losers were CG, Bankex and Auto while the FMCG and Realty were the top gainers.
Nifty closed the day at 5339.70 down by 22.05 points. Nifty April future closed at 5343.8, premium of 4.1 points.

• FII bought in Cash (Net buy 14.41 Crore)
• FII sold in index options and stock futures but bought in index futures (Net sell 506.23 Crore)
• DII sold in Cash (Net sell 192.64 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 1.35
• Advance Decline for the day was 635:668

Over all view
Nifty daily chart has formed “Small Black Candle” which clearly predicts uncertainty in market. Daily momentum indicators are also showing uncertainty in market with slightly favor to bear at this point of time. Nifty has strong resistance zone in between 5380 to 5400 crossing which we may see some favor to bull, although major bull entry possible only above 5445 level. strong support placed at 5290 level on closing basis, as long as this level sustain, there will be no sign of bear attack. Over trader should remain cautious and should wait for major breakout/down in market.

NIFTY Technical
Current Spot: 5339.70
Pivot: 5348
3DEMA: 5343
7DEMA: 5333
20DEMA: 5271
RSI (7 days): 58.84
Parabolic SAR: 5263
Supports: 5317 - 5294
Resistance: 5370 - 5401

Target Nifty
Buy Nifty above 5352 - 5371 - 5401 - 5426 SL - 5345
Sell Nifty below 5336 - 5321 - 5295 - 5266 SL - 5351

Option Open Interest

 

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

Option & Futures Call
Buy Nifty 5300PE above 66.9 for targets of 82.1, 97.6 SL - 61.3
Buy Nifty 5400CE above 53.9 for targets of 59.8, 68.3 SL - 50.1

Swing Trade
Noida Toll Bridge (34.45)

After making high of 42 levels in mid January, stock was in down trend and finally last week stock has made double bottom at 32.25 levels. Double bottom suggests strong support. Yesterday stock has formed “Long White Candle” a bullish candlestick pattern with relatively strong volume breakout on daily chart. 3 days EMA has given positive crossover to 8 days EMA more over stock closed above 20 days EMA. Looking at all above technical parameters traders with moderate risk appetite can consider Buy above 34.65 with tight Stop loss of 32.25 (closing basis) with target of 37.75.

Stock Ideas for the Day
Reliance Industries: Buy above 1137 for targets of 141, 1151, 1160 SL of 1129
Reliance Industries: Sell below 1122 for targets of 1118, 1112, 1099 SL of 1134
Heidelberg Cement: Buy above 62.6 for targets of 63.7, 65.7 SL of 61.5
Indowind Energy: Buy above 53.5 for targets of 54.1, 56.7 SL of 52.3

Positional Call
Kesoram Industries.: Buy above 399 for target of 419 SL of 391 (One Week)
JK Lakshmi Cement: Buy above 77.6 for target of 84 SL of 76 (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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