Market Outlook and Trading Calls for 28Aug07

Nifty: 4302.60 +112.45 Points Sensex: 14842.38 +417.51 Points

FII Activity:
Cash Segment: 695.35 crores net buyers
Index Futures: 1654.68 crores net buyers
Stock futures: 89.97 crores net buyers

Advance Decline ratio: 991:139

Outlook for 28Aug07:
Yesterday, the markets gained smartly and shot up in the second half. Technically the Nifty futures is very close to cover its gap created at 4325. It is quite possible that this gap can be filled in the opening session itself. It looks like today the market will give up all the gains of yesterday. If it holds up and doesn’t fall then we can close the F&O settlement at 4400. The banking stocks looked good yesterday and appears like there is more steam left in them. The US markets were trading weak at the time of posting this outlook and this can add to the fall in our markets. For today, the Nifty will face resistance at 4325-4363-4393 and should take support at 4270-4240-4198.

Futures Trading Calls:

Buy Century Textiles if sustains above 784 for target 820.
Buy L&T if sustains above 2550 for target 2630.

Sell Gujarat Ambuja Cement if sustains below 132 for target 129.50

Cash Market Calls:

Buy Era Constructions if sustains above 497 for target 570.
Buy Everyday Industries at current levels for target 58.50 for target 60.50
Buy Pidilite Industries if sustains above 152 for target 160 and 172.
Buy Pyramid Symira Theatres if sustains above 331 for target 360 and 380.

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.