Tuesday, April 20, 2010

Market outlook for 21/04/10

The domestic market today closed on a positive note on the back of the favourable cues from the global markets. After an early surge, market pared gains triggered by higher Asian stocks. However, the market moved in a tight range in morning trade ahead of the announcement of the RBI policy review. Later in the early afternoon trade, the domestic market surged to hit fresh intraday high soon after the Reserve Bank of India (RBI) has raised key short term interest rates by 25 basis points. Also, RBI hiked the Cash Reserve Ratio (CRR) to 6 per cent, in order to pull out the excess liquidity from the banking system. The Asian markets closed in green clearing dust that regulators were split on suing Goldman Sachs Group Inc. easing concern over the impact increased scrutiny on banks will have on profits. The U.S markets closed on a mixed note on a positive bias, after a mixed SEC vote by 3-2 to act on fraud charges against Goldman Sachs. Following the trend, the European market also opened in positive and continued to trade in green. The overall market breadth was positive, as 11 out of the 13 indices ended in green. Among the sectoral indices Realty, Bankex, PSU and Auto stocks were the main gainers.
Nifty closed the day at 5230.10 up by 26.45 points. Nifty April future closed at 5226.65, discount of 3.45 points.
  • FII sold in Cash (Net sell 156.65 Crore)
  • FII sold in index futures and index options but bought in stock futures (Net buy 56.08 Crore)
  • DII bought in Cash (Net buy 101.28 Crore)
  • US market ended Positive.
  • 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 1045:256
Over all view
Yesterday Nifty has formed “Small White Candle” with open and low of same rate, Yesterday was second day where Nifty has given close below two and half month old trend line support with dead crossover of 5 days EMA to 20 days EMA. Near term major support placed at 50 days EMA which is placed at 5170 level. Daily momentum indicators are showing sign of weakness but Stochastic is hovering in over sold zone which may give some amount of bounce back in market. Major resistance placed at 5280 level where we may see some supply. Overall market will remain volatile avoid spike on either side.

NIFTY Technical
Current Spot: 5230.10
Pivot: 5230
3DEMA: 5237
7DEMA: 5266
50DEMA: 5181
RSI (7 days): 39.11
Parabolic SAR: 5373
Supports: 5204 - 5177
Resistance: 5257 - 5284

Target Nifty
Buy Nifty above 5234 - 5250 - 5375 - 5297 SL - 5227
Sell Nifty below 5219 - 5207 - 5185 - 5160 SL - 5233

Swing Trade
BGR Energy (575)
Yesterday stock has given three month old downward sloping trend line breakout with “White Opening Marubozu and strong volume breakout on daily chart. Daily momentum indicators are hovering in bullish zone especially MACDh has given strong buy signal. Short term moving averages are favoring upward movement. Weekly RSI also generating buy signal in bullish zone. Looking at all above parameters traders with high risk appetite can consider Buy above 579 with stop loss of 571 for a Target of 594.

Stock Ideas for the Day
Reliance Industries: Buy above 1071 for targets of 1075, 1089, 1100 SL of 1063
Reliance Industries: Sell below 1058 for targets of 1054, 1043, 1029 SL of 1068
Bajaj Hindustan: Buy above 132.5 for targets of 135, 138 SL of 130
Shrenuj & Co.: Buy above 48.5 for targets of 49.4, 50.50 SL of 47.6

Positional Call
Thomas Cook: Buy above 67.80 for target of 74 SL 65 (One Month)
Lakshami Energy & Food: Buy above 131.5 for target of 138 SL 128 (One Week)

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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