Monday, April 19, 2010

Market outlook for 20/04/10

The key benchmark indices today closed on a negative note on the back of selling pressure that emerged across the counters due to the weak global markets. Asian stocks fell today dragging the MSCI Asia Pacific index down by the most in 2 months on concern a U.S suit against the Goldman Sachs Group Inc. signals increasing regulatory scrutiny on financial companies. Following the trend, the European market also opened in negative and continued to trade in red. Back home, the investors remained cautious ahead of the announcement to be made by RBI, regarding its key policy rates scheduled tomorrow. The overall market breadth was negative as all the 13 indices ended in red. Among the sectoral indices Realty, Metal, Oil&Gas and Power were the main losers.
Nifty closed the day at 5203.65 down by 58.95 points. Nifty April future closed at 5204.05, premium of 0.40 points.
  • FII sold in Cash (Net sell 755.51 Crore)
  • FII sold in index futures and stock futures but bought in index options (Net sell 147.88 Crore)
  • DII bought in Cash (Net buy 569.64 Crore)
  • US market ended Flat.
  • Global cues are flat to Positive.
  • SGX nifty is Positive as of now.
  • Most Active April Nifty Call Option: 5300 and 5200.
  • Most Active March Nifty Put Options: 5100 and 5200.
  • Advance Decline for the day was 255:1055
Over all view
Bearish candle taking support on the 50 dema and the downtrend line joining tops of Jan 2008 and 2010. Falling wedge on daily charts which is bullish. Daily oscillators are weak, RSI 14 below 50 level and stochastics in oversold area. Half hourly charts show movement in a steep down trending channel . Positive divergence seen in half hourly oscillators. Resistance at 5230 and support at 5139.
The short term trend is down and one should look to go short on rallies till 5400 is taken out.

NIFTY Technical
Current Spot: 5203.65
Pivot: 5192
3DEMA: 5243
7DEMA: 5278
50DEMA: 5171
RSI (7 days): 31.55
Parabolic SAR: 5387
Supports: 5173 - 5143
Resistance: 5222 - 5241

Target Nifty
Buy Nifty above 5211 - 5232 - 5360 - 5296 SL - 5196
Sell Nifty below 5191 - 5174 - 5137 - 5110 SL - 5201

Stock Ideas for the Day
Reliance Industries: Buy above 1070 for targets of 1075, 1090, 1104 SL of 1062
Reliance Industries: Sell below 1056 for targets of 1051, 1038, 1022 SL of 1067
Zee News: Buy above 17.5 for targets of 17.9, 18.5 SL of 16.8
IndusInd Bank: Buy above 183 for targets of 186, 191 SL of 179

Positional Call
Petronet LNG: Buy above 81.90 for target of 86 SL 80 (One Week)
Grauer & Weil India Ltd.: Buy above 68 for target of 75 SL 65 (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

Call 09831497250 or mail us @ S&P Wealth Creators with your Name and Mobile No. for subscription offer of intraday calls during Market hours.


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