Market Outlook and Trading Calls for 20Aug07

Nifty: 4108.05 -70.55 Points Sensex: 15141.52 -216.69 Points

FII Activity:
Cash Segment: 3535.76 crores net sellers
Index Futures: 602.43 crores net sellers
Stock futures: 668.73 crores net sellers

Advance Decline ratio: 228:892

Outlook for 20Aug07:
On Friday, the markets were very volatile and traded with high volumes. Even though markets are looking very weak, there might be a bounce back on Monday. The bounce back on Friday was on account of short covering. Technically, Nifty managed to close above the 200 day moving average and now should bounce sufficiently to cover the gap created at 4300. The global markets are also supportive as the US markets with good gains on Friday. The Asian markets are also expected to trade in positive on Monday. Again, 4300 levels should be safe enough to go short. The political uncertainty is weighing heavy on the markets. Sector wise, fertilizer stocks are looking hot whereas oil marketing stocks are looking very weak. For today, the Nifty should face resistance at 4190-4245-4300 and should take support at 4040-4025-3985.

Futures Trading Calls:

Buy BHEL at current levels with stop loss 1520 for target 1680.
Buy Indusind Bank if sustains above 53 for target 56.50
Buy Punjab National Bank at current levels with stop loss 475 for target 501
Buy Shoba Developers if sustains above 799 for target 830.

Sell IOC at current levels with stop loss 385 for target 345.
Sell HPCL at current levels with stop loss 231 for target 205.
Sell SAIL at higher levels with stop loss 147 for target 128 and 121.
Sell Cairns India at current levels for target 132.
Sell Dr. Reddys if sustains below 599 for target 570.
Sell Educomp Solutions if sustains below 2277 for target 2150.
Sell GTL at higher levels with stop loss 230 for target 205.
Sell Tata Motors if sustains below 634 for target 590.
Sell TCS at current levels with stop loss 1075 for target 1005.

Cash Market Calls:

Buy Trigyn Technologies if sustains above 34.25 for target 41.

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.