Tips...

BEST BUY

RCOM (BUY) 535 (Target1) 541 ( Target 2) 546 (Sl) 527

CROMPTON (BUY) 295 (Target1) 299 ( Target 2)302 (Sl) 289

INDIABULLS (BUY) 575 (Target1) 581 ( Target 2) 586 (Sl) 565

UTV SOFTWARE Buy @ CMP Target 530 StopLoss 495

PETRONET LNG Buy @ CMP Target 66 StopLoss 60

Tips...

BEST BUY

RCOM (BUY) 535 (Target1) 541 ( Target 2) 546 (Sl) 527

CROMPTON (BUY) 295 (Target1) 299 ( Target 2)302 (Sl) 289

INDIABULLS (BUY) 575 (Target1) 581 ( Target 2) 586 (Sl) 565

Market Forecast for 08.08.07

The Dow just managed to close in green amidst high volatility during the mid sessions. The indian markets will follow suit today. Since the market weakened in the closing hours, after remaining rangebound throughout the day, it is still not advisable to go long before the market closes above 4533. till then do intraday trade only..


Today, market may open flat or positive attached with high volatility and mixed bias and remain long only above 4370 with SL 4355 for a tgt of 4400-4435. If it remains below 4362 keep short with SL 4375 for tgt 4330-4305. Dont carry overnight positions till the nifty closes above 4533.. Till then,trade Intraday only....Mint Money..

BEST BUY

PUNJ LLOYD (BUY) 280 (Target1) 285 ( Target 2) 289 (Sl) 274

DLF (BUY) 583 (Target1) 591 ( Target 2) 596 (Sl) 572

CINEMAX (BUY) 140 (Target1) 143 ( Target 2) 157 (Sl) 135


Buy Andhrabank with sl 82.50 target 86.70---88.60

Asianelec with sl 918 target 950--980

sell Adaninet near 352 with sl 357 target 337--327

Start selling IFCI near 65-66.60 target 61--58

Expect a relief rally

A relief rally or a technical bounceback is expected tomorrow if global cues are not extremely bearish. The expectation is based on a technical development that has place on Monday.

Though the index saw a huge slide on opening, the lows made in the first 15 minutes were not tested during the day. The Nifty also posted a new intra-day high of 4355, making the intra-day trend-day bullish. This, according to Kamalesh Langote, director VFMDirect.com, indicates that the markets may open on a firm note.

Trading volumes were marginally up from Friday’s level while the advance-decline ratio strongly favoured bears. Immediate support is seen at 4,300 levels while strong resistance is seen at 4,404 levels. The 50-day moving average (Nifty 4,348) and 20 day-swing (Nifty 4,340) are placed nearby.

The 13-week moving average is at 4,310. This indicates there may not be a major pullback in the near future. The put/call ratio of the Nifty open interest moved down to 1.36 from 1.42 as 12.82 lakh open interest was added in call options against 7.65 lakh in put options.

The support and resistance on the basis of the Nifty put/call ratio is at 4,400 as the open interest is evenly placed at 4,400 levels. The support is seen at 4,300 levels as 15 per cent of the total put open interest is seen at 4,300 levels.

The intra-day volatility saw the players squaring there positions during the last hour of trading. If the markets open with a strong upward gap, the mid-day profit booking will pull down early gains. On Monday, the short covering was seen at lower levels, which pulled the Nifty above the psychological levels.

According to analysts, we are into a strong bear market if Nifty sustains below 4321-26 for two days. Below it, Nifty will be clearly in a mid-term bear phase. Investors have to be cautious as a heavy selloff is not ruled out.