WEEKLY MARKET UPDATE AS ON MONDAY 23 rd JULY 2012

NIFTY SPOT - (5198)

In our last weekly update we had suggested to buy on a slow 2/3 day fall to 5181-5131 level, with a stop loss of 5059 on a closing basis, and for a target of 5400. NIFTY had a slow fall in the first 2 days and made a weekly low of 5169 and rallied form this low to a weekly high of 5257 and closed the week @ 5198 . In the current week NIFTY has resistance @ 5249 - 5269 - 5290 while support is @ 5135 - 5044 - 4990. In the current week NIFTY, it is likely that NIFTY can post a fall to levels of 5135 - 5044 by wednesday. This fall will be accompanied with sizeable trading volumes and also some negative news in the global financial markets. Ideally one can expect a fall to 5100 - 5060 levels by tuesday/ wednesday. One can start buying during this decline on wednesday near 5060-5075 levels with a strict stop loss of 5059 on a closing basis. It should be noted that 4990 is the next strong support level below 5044, and should also hold good. A strong rally is expected to emerge from midweek onwards which can take the NIFTY back to levels of 5250. Traders can consider going long on wednesday with a strict stop loss of 5059 on a closing basis for a first target of 5250.

POSITIONAL TRADING CALL

1. Buy BF utility on decline to 440. Stop Loss 420. Target 500+

2. Buy ITC on decline to 248. Stop loss 240. target 275 +