Market Outlook and Trading Calls for 09Aug07

Nifty: 4462.10 +105.75 Points Sensex: 15307.98 +375.21 Points

FII Activity:
Cash Segment: 86.96 crores net buyers
Index Futures: 2169.22 crores net buyers
Stock futures: 372.19 crores net buyers

Advance Decline ratio: 840:262

Outlook for 09Aug07:
Yesterday, the markets gained a couple of percentage points. Today also the markets are expected to open in the positive. Do not be fooled by the up move. This is only a bounce because of short covering. Nifty futures provides an excellent opportunity to go short around 4540 levels. It is not advisable to go long in this market. Every higher level is a sell. As expected IT and bank stocks recovered yesterday and it is advised to stay out of these sectors for the time being. The global markets will help our markets to open in the positive today. I doubt if it can sustain higher levels. The markets may give up lot of its gains in the afternoon session. For today, the Nifty should face resistance at 4500-4526-4553 and should find support at 4435-4404-4344.

Futures Trading Calls:

Buy Jet Airways if sustains above 780 for target 806.

Cash Market Calls:

Buy Dabur Pharma if sustains above 86.50 for target 100.
Buy House of Pearl Fashions if sustains above 307 for target 324 and 350.
Buy Lakshmi Vilas Bank if sustains above 101 for target 116.

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.