Tuesday, May 25, 2010

Market outlook for 26/05/10

Nifty fell 137.20 points or 2.78% to 4806.75 whilst Nifty May Future closed at 4809.35 premium of 2.6 points.
  • FII sold in Cash (Net sell 1464.19 Crore)
  • FII bought in index options and stock futures but sold in index futures (Net buy 1038.27 Crore)
  • DII bought in Cash (Net buy 406.12 Crore)
  • US market ended in DEEP RED.
  • Global cues are Negative.
  • SGX nifty is flat to Negative as of now.
  • Most Active Nifty May Call Option: 4900 and 5000.
  • Most Active Nifty May Put Options: 4800 and 4900.
  • Advance Decline for the day was 115:1214
NIFTY Technical
Current Spot: 4806.75
Pivot: 4827
3DEMA: 4877
7DEMA: 4945
20DEMA: 5060
100DEMA: 5070
RSI (7 days): 20.75
Parabolic SAR: 5030
Supports: 4766 - 4726
Resistance: 4867 - 4927
MP Values Spot: VAH - 4873, POC - 4841, VAL - 4831
MP Values Futures: VAH - 4865, POC - 4846, VAL - 4810

Over all view
In yesterday’s edition we have mentioned that Nifty has wide trading range of 4842-5029 and either side breakout/breakdown will provide continuation of trend and yesterday itself Nifty has broken important support of Hammer low of 4842 and opened door for 4750 levels; and now strong support shifted to 4675 levels. On candlestick front Yesterday’s candle was a “Long Black Candle” which favor more bearish out come in coming days although important point to note here is that current situation is reacting to global cues rather than technical factor alone.

Target Nifty
Buy Nifty above 4827 - 4858 - 4910 - 4947 SL - 4821
Sell Nifty below 4802 - 4775 - 4737 - 4686 SL - 4826

Swing Trade
Sun Pharma (1587.40) - Bullish Engulf
Yesterday stock has formed “Bullish Engulf” a bullish reversal pattern with rising volume on daily chart. 3 days EMA has given positive crossover to 8 days EMA moreover daily momentum indicators have given bullish crossover to signal and is on the verge of positive territory. Looking at all above technical parameters traders with moderate risk appetite can consider Buy above 1590 with tight stop loss of 1569 (closing basis) for a Target of 1645.

Divis Lab (697.20) - Bearish Engulf
Yesterday stock has formed “Bearish Engulf” a bearish candlestick pattern moreover stock has formed “Symmetrical Triangle” pattern and down side breakout occurred at 705 levels; closing is well below of this level. Daily RSI has also given negative crossover to signal line, rest other momentum indicators are showing uncertainty at this level. Looking at all above technical parameters traders with moderate risk appetite can consider Sell below 693.50 with tight stop loss of 705 (closing basis) for a Target of 670-663.

Stock Ideas for the Day
Reliance Industries: Buy above 1003 for targets of 1010, 1038, 1053 SL of 995
Reliance Industries: Sell below 981 for targets of 973, 958, 931 SL of 1000
Piramal Healthcare: Buy above 502 for target of 507, 516 SL 495
Indraprastha Gas: Buy above 228 for target of 234,243 SL 226

Positional Call
Bang Overseas: Buy above 60 for target of 68 SL 59 (One Week)
NHPC: Buy above 28.5 for target of 31 SL 28 (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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