Outlook for the week ending 07Sep07

Outlook for week ending 07Sep07:
This week is expected to be volatile and Nifty can easily move around 400 points. Technically, the markets are on a bounce back and we have to wait and see if the higher levels can be sustained. Nifty has a strong resistance at 4595 and 4645. It has a strong support at 4165. Sector wise Banking, IT and steel are looking good. Automobile stocks are looking for a bounce back. It is advisable to exit long positions at higher levels. This entire month is expected to be volatile. No clear trend is available till Nifty closes above 4645 or below 4165 on the weekly charts. The US markets are closed on Monday and Fed chairman ben Bernayake’s statement of ‘will act as needed’ is not helping the cause as it still leave the investors guessing about the cut in interest rate. Internally, it is also required to watch for the political scene as to how it will shape up. Nifty will face resistance at 4532-4595-4645 and will take support at 4363-4245-4165 on a weekly basis.

Futures Trading Calls:

Buy Bank Nifty at current levels for target 6810 and 6950.
Buy CNX IT at current levels for target 4920.
Buy Nifty at current levels for target 4500 and 4570.
Buy Allahabad Bank if sustains above 93.50 for target 98.50
Buy BEML at current levels for target 1275.
Buy Colgate Palmolive if sustains above 396 for target 412.
Buy Divis Lab if closes above 1210 for target 1400.
Buy Escorts if closes above 98 for target 107.
Buy Financial technologies at current levels for target 2550.
Buy HTMT if closes above 398 for target 445.
Buy India Infoline at current levels for target 720.
Buy PNB if sustains above 493 for target 530.
Buy Reliance Capital at current levels for target 1280.
Buy Relaince Industries at current levels for target 2040.
Buy Tata Steel at current levels for target 715.

Cash Market Calls:

Buy Greenply Industries if sustains above 210 for target 235.
Buy NIIT Tech if sustains above 317 for target 340 and 357.
Buy South Indian Bank if sustains above 158 for target 168.
Buy Tata Elxsi if sustains above 325 for target 360.
Buy Tech Mahindra if sustains above 1318 for target 1385.
Buy Tulip IT at current levels for target 920.
Buy Welspun Gujarat if sustains above 251 for target 275.
Buy Yes Bank if sustains above 196 for target 220.

Points to Note:
1. All calls are for short term trading and should ideally hit the target within 2-4 weeks. Any calls other than short term calls will be specifically mentioned.
2. The calls provided on day 0 holds good for the next 4-5 trading sessions if entry price does not cross 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.