Market Outlook and Trading Calls for 10Aug07

Nifty: 4403.20 -58.90 Points Sensex: 15100.15 -207.83 Points

FII Activity:
Cash Segment: 27.23 crores net buyers
Index Futures: 872.72 crores net buyers
Stock futures: 178.78 crores net buyers

Advance Decline ratio: 271:843

Outlook for 10Aug07:
As expected the markets lost most of its gains in the afternoon session and closed deep in red. This is the first sign of reversal on the down side. The confirmation is if the markets close below the low of yesterday. I see a significant downside if this happens. There is a good possibility of this happening as the global markets are weak and we will open deep in the red tomorrow. Technically the next big support for Nifty is 4250 and below that 4050 is possible. If you observe the figures above, the FIIs were net buyers yesterday, but do not go by that as the FIIs are consistently booking losses and it will happen this time also. The markets are in total control of domestic institutional investors(DIIs). The global economic situation is bad and the future is bleak. The bank stocks have shown signs of tiredness and can correct substaintially. For today, the Nifty should take support at 4360-4300-4270 and should find resistance at 4420-4450-4530.

Futures Trading Calls:

Sell Nifty futures if sustains below 4340 for target 4200.
Sell Bank Nifty if sustains below 6775 for target 6600.
Sell India Infoline if sustains below 641 for target 595.
Sell JP associates if sustains below 810 for target 772.
Sell Kotak Mahindra Bank if sustains below 753 for target 715.
Sell Mcdowell if sustains below 1355 for target 1300.
Sell Mphasis BFL if sustains below 285 for target 260.
Sell Ranbaxy if sustains below 365 for target 345.
Sell Reliance Energy if sustains below 748 for target 685.
Sell Reliance Capital if sustains below 1090 for target 1045.
Sell S Kumar Nationwide if sustains below 100.75 for target 93.

Cash Market Calls:

Buy Kopran if sustains above 26.20 for target 28.40
Buy Mercator Lines if sustains above 54 for short term target of 71.

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.