Market Outlook and Trading Calls for 22Aug07

Nifty: 4074.90 -134.15 Points Sensex: 13989.11 -438.44 Points

FII Activity:
Cash Segment: 138.24 crores net sellers
Index Futures: 696.75 crores net sellers
Stock futures: 363.48 crores net buyers

Advance Decline ratio: 90:1050

Outlook for 22Aug07:
Even though the markets opened in the positive, it never gave any chance at those higher levels to short and came down continuously through out the day. This fall was totally unexpected as the Asian markets were up more than a percent and US markets were up too. May be the political uncertainty is weighing heavy on the markets. Now technically, a close below 4072 on the daily charts and close below 4000 on the weekly charts can bring the nifty down to 3790 within this settlement or may be within this week itself. Technology and metal stocks are looking weak. For today, the Nifty should find support at 4070-4044-3985 and should face resistance at 4107-4135-4175.

Futures Trading Calls:

Sell CNX IT at current levels for target 4280.
Sell ACC if sustains below 925 for target 900.
Sell Bajaj Auto if sustains below 2160 for target 2030.
Sell Bongaigaon Refinery if sustains below 50 for target 47.
Sell Hindalco at current levels for target 126.
Sell SBI if sustains below 1440 for target 1380.

Cash Market Calls:

No calls today.

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.