Market Outlook and Trading Calls for 02Aug07

Nifty: 4345.85 -183.00 Points Sensex: 14935.77 -615.22 Points

FII Activity:
Cash Segment: 1255.54 crores net sellers
Index Futures: 1733.88 crores net sellers
Stock futures: 756.55 crores net sellers

Advance Decline ratio: 81:1047

Outlook for 02Aug07:
Yesterday, there was huge selling in the market. So much that even the intraday short covering was absorbed without the markets going up. This shows the amount of weakness in our markets. The FIIs have sold another 1700 crores in Nifty futures and 1250 crores in equity market. The Nifty future has a discount of close to 60 points. The global markets are weak and we are following them without any bad local news. However the markets are expected to recover today on account of short covering. This Friday or Monday can be another big fall day. It is advisable to go short at all higher levels. The Nifty for today should find resistance at 4360-4430-4455 and should find support at 4330-4300-4250.

Futures Trading Calls:

Buy SAIL at current levels with stop loss 138 for target 150.

Sell Bombay Rayon Fashions at higher levels with stop loss 214 on closing basis for target 170 in short term.
Sell Aban Offshore if sustains below 2850 for target 2700.
Sell IPCL if sustains below 352 for target 330
Sell Mphasis BFL if sustains below 270 for target 260 and 245.

Cash Market Calls:

No calls for today.

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.