Market outlook for 19/04/10

Buying interest across the counters led the market bounce back from its choppy session and made the market touch the day's high in the late afternoon session. But the rise was for a short period and the market tumble down to negative zone in line with the global markets. The Asian stocks fell today as investors mulled whether the region's strong economic growth so far this year could trigger inflation and higher interest rates. Following the Asian market, the European market also opened in negative note which hampered the sentiments of investors back home. Earlier in the session selling pressure across counters emerged as investors feared of an adverse outcome of the RBI's annual policy meet next week and pulled the market down despite inflation being steady. Moreover the FIIs who were pouring money at a steady pace have turned a bit cautious ahead of the Indian Inc results. Among the sectoral indices buying interest can be seen across FMCG, Bankex and CD while Realty, PSU and Power remain on the seller's radar.
Nifty closed the day at 5262.60 down by 11 points. Nifty April future closed at 5257.1, discount of 5.50 points.

• FII bought in Cash (Net buy 243.30 Crore)
• FII sold in index futures and stock futures but bought in index options (Net sell 1095.02 Crore)
• DII sold in Cash (Net sell 188.91 Crore)
• US market ended in Deep RED.
• Global cues are flat to Negative.
• SGX nifty is Negative as of now.
• Most Active April Nifty Call Option: 5400 and 5300.
• Most Active March Nifty Put Options: 5200 and 5300.
• Advance Decline for the day was 448:851

Over all view
On daily chart Nifty has formed “DOJI” pattern and closed on two and half month old upward sloping trend line support. Daily RSI, Stochastic and MACDh showing weakness in the market but important point to note here is that Stochastic is hovering in over sold zone, which interprets that market will not fall sharply or it may find some halt or pause.
Strong support found at 5 week EMA at 5258 level which Nifty is maintaining from last 7 weeks. Next major support placed at 5188 level as long as this level sustain no major bear grip will be possible. Strong resistance zone will be in the range of 5290 to 5310 levels, if this level nifty surpasses then we may see some bounce back in market till 5400, which is a major resistance at this point of time of current rally.

NIFTY Technical

Current Spot: 5262.60
Pivot: 5261
3DEMA: 5283
7DEMA: 5303
20DEMA: 5268
RSI (7 days): 41.37
Parabolic SAR: 5396
Supports: 5239 - 5216
Resistance: 5285 - 5307

Target Nifty
Buy Nifty above 5272 - 5287 - 5314 - 5336 SL - 5265
Sell Nifty below 5255 - 5244 - 5222 - 5195 SL - 5271

Swing Trade

Jaiprakash Associates (148)
Stock was trading in box range since mid march 2010, on Friday stock has formed “Bearish Engulf” a bearish candlestick pattern and reliability of pattern is high. 3 days EMA has given negative crossover to 8 days EMA. Daily momentum indicators have also given negative cross over to signal line. Looking at all above technical parameters traders with moderate risk appetite can consider Sell below 146.50 with strict stop loss of 152 for a Target of 139.

Wockhardt (143)

After making high of 188 in mid January 2010, stock was in continuous downtrend. On Friday stock has formed “Bullish Engulf” a bullish candlestick pattern and reliability of pattern is high. 3 days EMA has given positive crossover to 8 days EMA. Daily momentum indicators have also given positive cross over to signal line. More over weekly RSI is on the verge of positive crossover. Looking at all above technical parameters traders with moderate risk appetite can consider Buy above 144.50 with strict stop loss of 140.50 for a Target of 153.

Stock Ideas for the Day
Reliance Industries: Buy above 1087 for targets of 1093, 1105, 1117 SL of 1081
Reliance Industries: Sell below 1078 for targets of 1074, 1062, 1051 SL of 1086
MSK Projects (India) Limited: Buy above 167 for targets of 171.5, 177 SL of 167
Kamat Hotels (I) Ltd: Buy above 126 for targets of 129, 133 SL of 122.5

Positional Call
JSW Energy Limited: Buy above 121 for target of 127 SL 118.8 (One Week)
Fortis Healthcare: Buy above 162.1 for target of 170 SL 158 (One Week)
Karnataka Bank: Buy above 136.80 for target of 148 SL 130 (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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