Market Outlook and Trading Calls for 20Jul07

Nifty: 4562.10 +62.55 Points Sensex: 15550.13 +248.96 Points

FII Activity:
Cash Segment: 652.08 crores net buyers
Index Futures: 611.71 crores net buyers
Stock futures: 29.62 crores net buyers

Advance Decline ratio: 652:449

Outlook for 20Jul07:
The markets remained positive throughout the day yesterday and closed above my final resistance level of 4548. It is very difficult to predict the higher levels of Nifty from these levels. It appears that the markets are overstretching before the burst. The FIIs bought 600 crores in index futures yesterday and it appears that they are consistently booking losses. The global markets were positive. US and Europe were positive and the Asian markets are trading in the positive today. We also will open in the positive today. We have to wait and watch if we can remain there throughout the day. I expect some profit taking in the later half. The Nifty should face resistance at 4591-4608-4620 and should take support at 4554-4522-4512.

Futures Trading Calls:

Buy Bharti Airtel if closes two consecutive days above 900 for target 1000 in short term.

Sell AB Nuvo if sustains below 1560 for target 1440.
Sell Allahabad bank if sustains below 100.60 for target 95.

Cash Market Calls:

Buy Cambridge Technologies if sustains above 56 for target 65 and 75.
Buy Havells India if closes above 545 for target 630.
Buy Jyothi Structures if sustains above 214 for target 234.
Buy Precot Mills if sustains above 180 for target 200.
Buy Texmaco Ltd if sustains above 1250 for target 1350.
Buy Zuari Inds if sustains above 229 for target 240.

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.