Market Outlook and Trading Calls for 13Aug07

Nifty: 4333.35 -69.85 Points Sensex: 14868.25 -231.90 Points

FII Activity:
Cash Segment: 742.30 crores net sellers
Index Futures: 1037.98 crores net sellers
Stock futures: 640.15 crores net sellers

Advance Decline ratio: 312:800

Outlook for 13Aug07:
There is a lot of debate about markets going up or down on Monday. Technically there was a significant gap created on Friday when the markets opened down. This gap has to be filled up. There are two possibilities. If the markets open in the green and touches the level of 4400 then it may start going down from then on. If the markets open in the down side then it can recover in the later half and remain strong for a couple of days. In any case 4400 is the maximum I see it going up for the time being. The weakness is very much evident and I see it going down till 4050 within this settlement. IT stocks can hold up where as the banking stocks can correct significantly. For Monday, the Nifty should face resistance at 4363-4400-4435 and should take support at 4308-4275-4240.

Futures Trading Calls:

Buy Nagarjuna Fertilizers if sustains above 27.25 for target 29.50
Buy Orchhid Chemicals if sustains above 224.25 for target 230 and 238.
Buy Polaris if sustains above 127 for target 143.

Sell Titan Industries around higher levels of 1170 for target 1060 with stop loss 1200.

Cash Market Calls:

Buy Atlanta Ltd if sustains above 285.50 for target 355.

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.