Market Outlook and Trading Calls for 21Aug07

Nifty: 4209.05 +101.00 Points Sensex: 14427.55 +286.03 Points

FII Activity:
Cash Segment: 648.93 crores net sellers
Index Futures: 4063.52 crores net buyers
Stock futures: 367.16 crores net buyers

Advance Decline ratio: 862:266

Outlook for 21Aug07:
The bounce in our markets was good, but not as expected. Our markets recovered only 2.50 % whereas all the Asian markets recovered close to 5% I expect the markets to continue its up move on Tuesday also. The markets might open on the positive side but it may not sustain the gains and give away all the gains in the later half of the day. There is a good possibility that we may close in the negative. It is advisable to remain cautious and create short positions at the higher levels. As expected yesterday, the fertilizer stocks zoomed. For today, the Nifty should find resistance at 4220-4240-4295 and should take support at 4190-4135-4105.

Futures Trading Calls:

Sell Orchid Chemicals if sustains below 202 for target 196 and 189.

Cash Market Calls:

Buy California Software if sustains above 86 for target 96.
Buy Coramandal Fertilizers if sustains above 98 for target 107.

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.