Market Outlook and Trading Calls for 12Jul07

Nifty: 4387.15 -18.90 Points Sensex: 14910.62 -99.26 Points

FII Activity:
Cash Segment: 99.34 crores net buyers
Index Futures: 654.95 crores net sellers
Stock futures: 602.04 crores net sellers

Advance Decline ratio: 572:521

Outlook for 12Jul07:
Yesterday in spite of Infosys lowering their guidance the markets held fort and did not crack up to expectations. Even though IT stocks lost a few percents, there is all possibility that these stocks will bounce back from lower levels. Now, Infosys has a good support at 1910 level and will find it tough to break that level. The Nifty futures trimmed its discount to the spot price to close with only 2 points discount. The court decision on Relaince Industires is also expected today. The global markets are strong and this should help our market open in the positive. Short covering might take the indices even higher. Today is expected to be a good day, but caution is advised at all higher levels. The Nifty should find resistance at 4411-4430-4460 and should find support at 4363-4344-4325.

Futures Trading Calls:

Buy Hindustan Construction if sustains above 127.75 for target 134.
Buy India Infoline if sustains above 765 for target 795.
Buy Deccan Aviation if sustains above 148 for target 158.
Buy Century Textiles if sustains above 740 for target 764.
Buy Bombay Dyeing if sustains above 633 for target 653.

Sell IOC at current levels for target 420.

Cash Market Calls:

Buy Shree Asthavinayak Cine if sustains above 298 for target 330 and 370.

Points to Note:
1. All calls are for swing trading and should ideally hit the target within 5-6 trading sessions. Any calls other than swing calls will be specifically mentioned.
2. The calls provided on day 0 holds good for the next 2-3 trading sessions if fails to sustain above/below the mentioned levels on day 1.

Disclaimer: The recommendations provided would be purely on my personal opinion and doesnot reflect any fund house interest or my personal holdings. I would not be responsible for the loss in trades undertaken based on my recommendations.