14/7/09 - Market Cues & Calls

Market opened gap down yesterday followed by weak Asian cues which denotes market still remain under pressure.yesterday Bank and IT Index played well. RIL lag to give support to market.IT,Oil,pharma,cement,PSU witnessed buying @ lower levels. 3902 support gave @ yesterday's column acted well for Nifty future. Yesterday's Q1 earnings from Axis bank was better.Axis Bank Q1 earnings rise 70.24%.India VIX closed at 36.58, increased by 2% suggests instability in markets.On Option side 4100 CE and 3800 PE added more open interest.FII's are still on sell side and DII's are using these dips to inflow their money for long term or atleast upto Q2 Results.

INSTITUTIONAL ACTIVITY :: FII (-559.23 cr) ::: DII (742.26 cr)

So whats for today? lets see. US markets and Europe closed marginally postive, where DOW closed nearly 2.2% up and FTSE 1.6% up. Asia will open positive. With Dow & Asian trigger nifty will open positive. Intraday oscillators are Oversold. EOD chart of Nifty spot was an hammer which has a character of denoting trend reversal. Nifty fut was an doji @ EOD .

Things to consider yesterday volume was dry,but last hour made up some good volumes lead by banks and IT stocks. As Said in weekly column Nifty fail to close above 4155 is a short for 3713. Still I feel it will be a pullback rather an reversal. Still I bet for 3713 with bad Q1 results ahead.

Nifty Fut Support @ 3919 :: Resistance @ 4012

3942 - 3958 - 3973 - 3988

Trading above 3955 looks bullish and below its bearish for the day. Market will trade with volatile have SL and trade. If Market open gap up above 4000 , it has higher chance of going 3966.

Intraday calls ::

BUY CIPLA @ 267 - 269 SL 265 TGT 274 - 278

SELL ORIENT HOTEL @ 195 - 197 SL 201.50 TGT 192 - 190

POSITIONAL CALL ::

BUY MERCK @ 385 - 395 SL 381 [closing basis] TGT 405 - 411 - 418

Happy Trading.