Market Outlook and Trading Calls for 16Jul07

Nifty: 4504.55 +58.40 Points Sensex: 15272.72 +180.68 Points

FII Activity:
Cash Segment: 1323.52 crores net buyers
Index Futures: 14.65 crores net buyers
Stock futures: 105.38 crores net sellers

Advance Decline ratio: 485:625

Outlook for 16Jul07:
On Friday, the markets stood steady and held on to its gains throughout the day. The point to note here is the advance decline ratio. In spite of the indices gaining over a percent the number of advancing stocks are below the number of declining stocks. Most of the stocks lost its intraday gains to close with small gains or to close in negative. The FII figure in derivatives also suggests that a correction is round the corner. If the markets open in the positive tday, it is safe to go short in Nifty futures for a day or two. For today, the Nifty should face resistance at 4531-4555 and should take support at 4452-4434-4411.

Futures Trading Calls:

Buy India Infoline if sustains above 835 for target 875.
Buy IPCL if closes above 360 for short term target of 415.
Buy Reliance Industries if sustains above 1805 for target 1865.

Sell Dr. Reddys if sustains below 664 for target 640 and 615.
Sell Mphasis at current levels for target 292.
Sell Parsvanath if sustains below 374 for target 355.
Sell Praj Industries at current levels for target 447.
Sell SBI if sustains below 1545 for target 1470.

Cash Market Calls:

Buy Pearl Global if sustains above 88.50 for target 100 and 110.
Buy RPG Transmission at current levels for target 330.
Buy Noida Toll Bridge at current levels for target 32.

How to read the calls:
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.