Market Outlook and Trading Calls for 06Aug07

Nifty: 4401.55 +45.20 Points Sensex: 15138.40 +152.70 Points

FII Activity:
Cash Segment: 142.70 crores net sellers
Index Futures: 1033.17 crores net buyers
Stock futures: 341.47 crores net buyers

Advance Decline ratio: 736:374

Outlook for 06Aug07:
The markets are expected to open weak on Monday as the global markets closed weak on Friday. The IT stocks appear to be bottoming out and it is risky to short sell them at these levels. Further downside in IT can be expected only if rupee breaks the important support level of 40. Overall, selling is advised at all higher levels as more downside is expected in the coming days. The Nifty should take support at 4363-4340-4310 and should take resistance at 4425-4460-4500.

Futures Trading Calls:

Buy ABB at current levels with stop loss 1070 for target 1150.

Sell Canara Bank at higher levels with stop loss 269 for target 230.
Sell IDBI at current levels with stop loss 111.25 for target 102.

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.