Market Outlook and Trading Calls for 27Jul07

Nifty: 4619.80 +31.10 Points Sensex: 15776.31 +76.98 Points

FII Activity:
Cash Segment: 278.04 crores net buyers
Index Futures: 1576.47 crores net sellers
Stock futures: 626.67 crores net sellers

Advance Decline ratio: 667:423

Market Outlook for 27Jul07:
Yesterday the markets went up in the last half hour only on account of short covering. Please do not read much into it. The global markets are extremely weak and I expect a black Friday today. I expect the sensex to easily lose 300-350 points. Be careful in what you sell. Please do not short technology stocks as they might be the one holding up the market. It is still advisable to take a directional call only after the announcements of the credit policy on 31Jul07. The Nifty for today should find support at 4606-4570-4552 and should find resistance at 4620-4645-4685.

Futures Trading Calls:

Sell Bank Nifty at current levels for target 6820. This target can be achieved in intraday.
Sell ACC if sustains below 1000 for target 950.
Sell Cairns India if sustains below 149 for target 142.
Sell Patni Computers at current levels for target 494.
Sell PNB if sustains below 512 for target 497.
Sell VSNL at current levels for target 453.

Cash Market Calls:

Buy Lumex Auto if sustains above 76.50 for target 85.

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.