16/7/09 - Market Cues & Calls

Market again opened gap up yesterday followed by strong global cues and remained firm after Europe opens.Yesterday's rally lead by realty and metals through out the session as demand increases in those counters. Followed by sugar,infrastructure,transport.Sensex crossed 14k mark again yesterday with intra swing of 800 points and closed @ 14,253 and nifty closed @ 4233 with 122 points gain. Nifty closed above 4155 level which we mentioned in yesterday's column that we can expect short covering in this zone.Monsoon started in various parts of country giving some boost to investors community.Our yesterday's MLL call was top among NSE up by 13% .On option side 3800 PE and 4300 CE added more Open Interestso what to expect today let's see.

INSTITUTIONAL ACTIVITY :: FII (+273 cr) ::: DII (+255 cr)

Cues ::

>>>> US and Europe markets end nearly 3% up
>>>> Nasdaq stocks end up high due to intel's stunning results
>>>> Market volumes are up compared to last four sessions.
>>>> Nifty traded in huge discount ended in premium of 3.40 @ close
>>>> PCR (put call ratio) @ 1.01
>>>> Nifty closed below the tip of 50 SMA (4236)
>>>> Advance Declines improved considerably

Technical view ::



Technically Market bounced from Oversold levels. MACD not crossed, RSI 2 @ 89.29 nearing OS region.As 4155 crossed and closed above that shorts are out from the system. Nifty nearing 61.2% retracement.H & S neckline has been touched and closed above it where the pattern gets failed. Yesterday's gap chart one of the gap filled still a gap @ 3990 - 4015 un filled, Upper gaps are more powerful than Downside gaps.closing abv 4155 , I bet for 100% retacement in the second chart with 4187 as Stop loss.Trendline Resistance @ 4365 . For Intraday holdin above 4168 is bullish below that bearish. Positional buyers can look for MACD cross, RSI2. 4187 is good support in nifty fut, any downside move only below that. In the final chart it clearly seen which is leading the market. Its Realty >>> Banknifty >>> MIDCAP >>> INFRA >>> IT. so clearly shows demand in Realty,bank and midcap stocks. So here I bet for some good realty picks like DLF for short term. 4187 need to take support. Safest play is Intraday.

Levels ::

Nifty Fut Supp @ 4162 :: Res @ 4373

4224 - 4250 - 4275 - 4311

Calls ::

BUY SESA GOA @ 212 - 213 SL 207 TGT 220 - 225 Positional hold

BUY SOUTH BANK @ 99 - 100 SL 94.95 TGT 105 - 108 Positionally can hold for 130 target

Positional Breakout stocks :: ATLANTA,EIDPARRY,ONMOBILE