Market Outlook and Trading Calls for 18Jul07

Nifty: 4496.75 -15.40 Points Sensex: 15289.82 -21.40 Points

FII Activity:
Cash Segment: 359.06 crores net buyers
Index Futures: 156.02 crores net sellers
Stock futures: 112.44 crores net sellers

Advance Decline ratio: 358:744

Outlook for 18Jul07:
Yesterday’s correction was welcome after 4 days continuous up move. Reliance Industries was the one which held out and contributed largely for holding the Nifty otherwise there would have been much more downside. Today’s close is crucial for the immediate short term. If the indices close in negative today, there might be more consolidation at these levels. The rumor in the market is that the Nifty will touch 4700 in the immediate short term. The US markets have been flat and most of the Asian markets are trading in negative. The rally in the small PSU banks which started two days back already looks tired. For today, the Nifty should face resistance at 4510-4525-4542 and should take support at 4452-4434-4415.

Futures Trading Calls:

Sell Cipla at current levels for target 202.50
Sell IDBI if sustains below 117.50 for target 112.50
Sell India Infoline if sustains below 795 for target 760.
Sell JP Associates at current levels for target 808.
Sell Kesoram Industries if sustains below 505 for target 488.
Sell Petronet LNG if sustains below 59.50 for target 57.

Cash Market Calls:

Buy Celebrity fashion if sustains above 83.50 for target 92.
Buy Excel Crop Care if sustains above 115.50 for target 132.

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.