18 AUG TO 22 AUG 2008

RELIANCE(cmp 2277)
was unable to achieve our targets of 2450 last week and reversed from 2376(now turned resistance). Its target is still intact but keeping in mind the present sentiment in the market this week, it could move down towards 2150. Keep this 2150 as stop loss for longs.

1. F&O has 9 trading sessions remaining for August contract. Our previous week calls may be traded according to levels this week though, the targets and stop loss remain the same as last week. Markets turn week only on a nifty closing below 4120 and Reliance below 2150. But we suggest August long positions to be squared off on nifty closing below 4300 and/or Reliance below 2150.

2.Go long if Reliance reverses up from 2200-2150 levels for short term targets of 2375 and 2400 with given stop loss of 2150.


SBIN(cmp 1455)
still moving sideways. Likely to decline towards 1300 in near term. No trading call for this week also. But it is not an ordinary stock as we know. It still has its 1800 level as medium term targets open, if does not breach 1300. It can even rebound from 1400 levels. But let us wait for a clear direction.

INFOSYSTCH(cmp 1693)
NASDAQ100, as we said earlier had strong buying pressure visible on charts. NASDAQ lists all the important technology front runners like Infosys, Microsoft and Intel etc. But it is not necessary that Infosys has also turned bullish. The direction remains unclear until closes above 1760. Then it can move towards 2000 in the medium term.

NIFTY FUTURES(4437)
The premium is narrowing down. But shorting is not advised until 4100 is held because the direction is not clear and the markets can remain in uptrend until this level is respected.
If 4300 is respected this week then a bullish uptrend can also resume in the short term in the direction of 5100. Last week's high at 4650 is also a barrier to be breached if uptrend starts.

1. Nine sessions of August contract are remaining. Buying on declines is also recommended as long as markets do not close below 14400(4300). Therefore, please hold your existing longs as per your risk appetite. We do not recommend addition to existing long positions in August contract if 4300 is breached.
2. Straddles of previous week may sell put option around 4300(nifty spot) and keep holding the call option.
3. Fresh longs only on a close above 4650 or on declines to 4300; and fresh shorts (for risk appetite trader) only below 4300/4100.

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