Market Outlook and Trading Calls for 13Jul07

Nifty: 4446.05 +59.00 Points Sensex: 15092.69 +181.42 Points

FII Activity:
Cash Segment: 614.08 crores net buyers
Index Futures: 768.10 crores net buyers
Stock futures: 237.74 crores net sellers

Advance Decline ratio: 774:326

Outlook for 12Jul07:
Yesterday, the markets, as expected opened in the positive and remained there throughout the day. The Nifty futures discount built up during the day vanished at the end and closed with a discount of just 2 points. The global markets are extremely strong and the US gained almost 3% and the Asian markets are trading with 1.5% gain today. Other emerging markets are also traded strongly yesterday. My Nifty target of 4460-4500 is fast approaching and can be hit today. There is no doubt that the markets will open with a huge gap up but, I doubt its ability to hold the higher levels and can correct in the later half of the day. The analysts are predicting the sensex level of 15600 and it is better to wait and watch if that level hits instead of buy and watch. The overall sentiment is turning bullish which is dangerous. One drop from the top can trap a lot of traders. For today, the Nifty should face resistance at 4485-4500-4525 and should take support 4412-4385-4365.

Futures Trading Calls:

Buy Unitech if sustains above 584 for target 620.
Buy CESC at current levels for target 447.
Buy Oriental bank if sustains above 263 for target 280.

Cash Market Calls:

Buy Color Chips if sustains above 12.30 for target 13.80
Buy Man Industries if sustains above 285 for target 310.
Buy RIIL if sustains above 565 for target 615.
Buy Rico Auto Inds if sustains above 49 for target 53.50 and 55.50
Buy Vimta Labs if sustains above 155.50 for target 170.

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.