Intraday call performance 04/07/08

News based volatile market

volatility continued in the indian market and today being the day of hectic political activities with Samajawadi Party about to join the government and Left about to withdraw from the government.Trading was too volatile today with moves on both sides and market started the day with little upper side from yesterday's closing and then gained momentum just before inflation numbers came which surprisingly came below 12% as Inflation for week ended June 21 has come at 11.63% versus 11.42% and market discounted this small surge in inflation and reacted well bosting nifty movements on the upper side and then after sometime came down heavily and then again recovered well to go well past 4000 and even closed in green above 4000.Stocks like Reliance Capital which was boosted by news of S.P joning the government exploded from low of 860 level to make a high of 992 in today's trade.This was even told here in the market outlook section today.Today, L&T, Reliance Industries, ICICI Bank, Reliance Communication, ITC, BHEL, HDFC, DLF and ONGC were big contributors to both indices.

Stock watch for the day:

ICICI Bank: This was given a sell call below 570 for targets 555 and it made a low of 560

Following calls were given in yahoo messenger for clients:

Clients continue enjoying profits here irrespective of volatile market conditions

Short Nifty Futures around 3930 with stop 3955 and it just made 3920 and then stop loss hit

Short Nifty Futures around 3970 with stop 3985 and it made 3935 and told all to cover position

Short ICICI Bank at 584 with stop 589 and it made 563....very good profit

Short Cairns around 255 stop 258 and it made 246....very good profit

Short RCom around 405 with stop 407 and it made just 400 and then hit the small stop loss

Short SBI around 1125 with stop 1130 and it made 1100

Market Outlook 04/07/08

Nifty very near to form long term base now

These day's markets are too volatile and yesterday in the begining hours only it crashed below 3900 and though in the late afternoon it made a violent attempt to move above 4000, it didn't succceed as severe selling emerged again that took nifty back to 3900 levels and this shows that the bear market is still alive and strong, and yesterday's trading has confirmed that.The major concern for indian market is now seems to be the nuclear deal and the stability of the government.Once the threat goes off and crude eases then bullish breakout will emerge taking nifty above 4500 for sure.The news of 3 ministerial berths to Samajwadi Party may also boost R-Group stocks and we may expect blast in R-Group stocks again.It's all manipulations in the market and before that major blast, they seems to be taking R-Group to lower levels first and then blasting from bottom is a strong possibility.The Dow rose 73.03, or 0.65 percent, to 11,288.54.The dollar was mixed against other major currencies, while gold prices fell.Light, sweet crude settled up $1.72 at a record $145.29 per barrel on the New York Mercantile Exchange after trading as high as $145.85 - also a new record.For today, nifty will face strong resistance at 3975 and failure to cross this will invite selling and nifty is likely to test 3900 first and then 3850 is strongest support for today.Today being the last day of the week, market can be volatile again with moves on both sides.

Stock watch for the day:

ICICI Bank (572): Short this stock on break of 570 for targets 555-545. Above 570, it looks strong.