Market outlook for 27/04/10

The key benchmark indices ended the volatile session on firm note on the back of strong global markets. The key benchmark indices gained for the 5th consecutive day on higher European stocks and the U.S. data which showed economic recovery was gathering strength. The domestic market opened the day's trade with optimistic note on the back of better Q-4 results of the corporate in India like Reliance industries, ICICI bank, HDFC bank and Maruti Suzuki. The Q4 March 2010 results announced so far have been good. The combined net profit of a total of 236 companies rose 27.8 per cent to Rs 20195 crore on 46 per cent rise in sales to Rs 180839 crore in the quarter ended March 2010 over the quarter ended March 2009. However the market remained volatile and may remain high this week as traders roll over positions in the derivatives segment from the April 2010 series to the May 2010 series ahead of the expiry of the near-month April 2010 contracts on Thursday, 29 April 2010. The market breadth, indicating the overall health of the market was strong as 9 out of the 13 sectoral indices closed in green. On the sectoral front buying interest was witnessed across Metal, PSU and Bankex stocks while Realty, Oil&Gas and HC witnessed the selling pressure.
Nifty closed the day at 5322.45 up by 18.35 points. Nifty April future closed at 5319.90, discount of 2.55 points.

• FII bought in Cash (Net buy 234.23 Crore)
• FII bought in stock futures, index futures and index options (Net buy 366.14 Crore)
• DII sold in Cash (Net sell 73.69 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.
• Advance Decline for the day was 693:613

NIFTY Technical

Current Spot: 5322.45
Pivot: 5323
3DEMA: 5301
7DEMA: 5285
20DEMA: 5268
RSI (7 days): 61.57
Parabolic SAR: 5161
Supports: 5304 - 5285
Resistance: 5342 - 5361
MP Values: VAH - 5334, POC - 5327, VAL - 5319

Over all view
All indicators are once again bullish. However till 5400 is crossed decisively the fear of the fall resuming looms. Resistances between 5300-5400 are many. Breaking above 5334 will be a breakout from the down trending channel and could lead to more upsides, but one needs to be very careful in trading the breakout till 5400 is taken out. The nifty has taken support at 5316 thrice today and violation of this level could be the first sign of weakness.
Supports are at 5278-5154. Suggesting a directional strategy at this juncture is difficult. Longs may keep a stop loss of 5278 and shorts a stop loss of 5400.

Target Nifty
Buy Nifty above 5330 - 5328 - 5360 - 5375 SL - 5323
Sell Nifty below 5312 - 5307 - 5291 - 5270 SL - 5328

Swing Trade
DhanBank (151.55)

Dhan Bank has been trading in a range of 124-155 for last five month and recently there has been increased interest in the stock, so if this stock manages to close above 155 with good volumes then it could be bought for target of 180.

Stock Ideas for the Day
Reliance Industries: Buy above 1083 for targets of 1089, 1109, 1123 SL of 1075
Reliance Industries: Sell below 1066 for targets of 1060, 1046, 1030 SL of 1080
Gati.: Buy above 72 for targets of 73.5, 76.3 SL of 68.9
Indian Bank: Buy above 222 for targets of 225, 229 SL of 217

Positional Call
Indian Overseas Bank: Buy above 98 for target of 107 SL 96 (One Month)
Allahabad Bank: Buy above 163 for target of 171 SL 159 (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

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