Market outlook for 02/08/10

Nifty closed down 41.30 points (0.76%) at 5367.60 whilst Nifty August Future closed at 5374.30 premium of 6.7 points.

• FII bought in Cash (Net buy 210.86 Crore)
• FII bought in index options but sold in index futures, stock futures (Net buy 1866.48 Crore)
• DII sold in Cash (Net sell 129.97 Crore)
• US market closed flat.
• Global cues are flat to positive.
• SGX nifty is positive as of now.
• Most Active Nifty August Call Option: 5400 and 5500.
• Most Active Nifty July Put Options: 5400 and 5300.
• Advance Decline for the day was 564:751

NIFTY Technical

Current Spot: 5367.60
Pivot: 5374
5DEMA: 5397
10DEMA: 5397
20DEMA: 5369
50DEMA: 5294
RSI (7 days): 42.67
Parabolic SAR: 5478 (System short)
Supports: 5343 - 5319
Resistance: 5398 - 5428

MP Values Spot: VAH - 5409, POC - 5395, VAL - 5382
MP Values Futures: VAH - 5407, POC - 5398, VAL - 5387
MP Values Bank Nifty Futures: VAH - 10170, POC - 10148, VAL - 10129

Over all view

On Friday, the key benchmark indices belled the day's trade with negative note in line with other Asian peers. After a gap down opening, the key benchmark Indices traded range bound with negative bias, as investors were cautious tracking cues from the global markets. Selling pressure intensified in the afternoon session across the bourses, which led the domestic markets to end the volatile trade on red note.
Nifty ultimately closed below the psychological level of 5400, and also below Day LEMA which is bearish in nature, Weekly close was just positive, over 5 Week EMA. (See Tech Table for details). RSI is in down trend from overbought level, Stochastic is showing negative divergence and in downtrend, and the volume were on the normal.
Nifty on Friday near the closing stages just bounced of the Box Range low and closed at 5368 making a low of 5349 and high of 5413 and closed in the range of (5453-5478); break of this range will decide the future course of Nifty. The trend line resistance is at 5455, breakout will take Nifty to its next trend line resistance at 5515 and above, the support for nifty comes at 5353. Trade light at higher levels and wait for any breakdown or breakup confirmation to take new position, till then trade the Box Range.

Target Nifty
Buy Nifty above 5391 - 5403 - 5435 - 5453 SL - 5384
Sell Nifty below 5366 - 5359 - 5340 - 5309 SL - 5390

Stock Ideas for the Day
Reliance Industries: Buy above 1017 for targets of 1019, 1023, 1028 SL 1010
Reliance Industries: Sell below 1005 for targets of 1003, 1000, 994 SL 1015
Axis Bank: Buy above 1343 for targets of 1350, 1360 SL 1329
IFCI: Buy above 62 for targets of 63, 64.2 SL 60.5

Positional Call
Orbit Corporation: Buy above 126 for target of 138 SL 120 (One Month)
Godrej Industries: Buy above 190 for target of 202 SL 186 (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