Market outlook for 31/08/10

Nifty closed up 6.75 points (0.12%) at 5415.45 whilst Nifty September Future closed at 5426.20 premium of 10.75 points.

• FII bought in Cash (Net buy 184.41 Crore)
• FII bought in index futures, index options and stock futures (Net buy 1617.02 Crore)
• DII bought in Cash (Net buy 68.71 Crore)
• US market is trading in Red.
• Global cues are flat to negative.
• SGX nifty is negative as of now.
• Most Active Nifty September Call Option: 5500 and 5600.
• Most Active Nifty September Put Options: 5400 and 5300.
• Advance Decline for the day was 550:791

NIFTY TECHNICAL

Current Spot: 5415.45
Pivot: 5425
5DEMA: 5446
10DEMA: 5459
20DEMA: 5452
50DEMA: 5385
RSI (7 days): 38.24
Parabolic SAR: 5547
Supports: 5381 - 5346
Resistance: 5460 - 5504

Nifty VWAP: 5430.70
Bank Nifty VWAP: 10764.33
MP Values Spot: VAH - 5447, POC - 5433, VAL - 5414
MP Values Futures: VAH - 5454, POC - 5440, VAL - 5420
MP Values Bank Nifty Futures: VAH - 10826, POC - 10788, VAL - 10730

OVERALL VIEW

Nifty closed at 5415, below all daily moving averages and also below weekly low EMA, signifying weakness in the index. (See Tech Table for details). Nifty is getting the much needed support at 50SMA at 5394 and bounced back to close just over it. Nifty need to close above daily 5EMA at 5446 to carry on with the upward momentum, and any close below 5379, it goes into bear grip. RSI is in downtrend from overbought levels; stochastic has given a negative crossover and is in downtrend, the volume was average.
The trend line resistance is at 5495 and the channel support at 5350. Sell on rises keeping 5495 as stop loss.

TARGET NIFTY
Buy Nifty above 5432 - 5461 - 5498 - 5535 SL - 5425
Sell Nifty below 5418 - 5393 - 5357 - 5319 SL - 5430

INTRADAY TRADE
Reliance Industries: Buy above 957 for targets of 959, 965, 971 SL 950
Reliance Industries: Sell below 943 for targets of 940, 936, 930 SL 955
PowerGrid: Buy above 109 for targets of 110.5, 112 SL 107.5
KFA: Buy above 60.5 for targets of 61.5, 63 SL 59.3

SCORE SHEET
Escorts: Buy above 197 for targets of 200, 204 SL 195: Target 202.95 achieved
Spicemobil: Buy above 84 for targets of 86.5, 89 SL 83: Target 86.50 achieved

POSITIONAL TRADE
Auropharma: Buy above 1060 for target of 1200 SL 1049 (One Month)
EIHotel: Buy above 152 for target of 164 SL 147 (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