Live Intraday Calls - 21.09.07
Market Outlook
Following 2 sessions of stellar gains, the bulls took a rest on Wall Street. Record oil prices, a declining U.S. dollar, prompting a bit of profit taking by the close. What\'s more, a report from the National Retail Federation projected the slowest gain in holiday sales since 2002, pressuring retail stocks.
The Dow shed 48.9 points and gave up potential support at the 13,800 level,the S&P 500 gave up 10 points and lost potential support at the 1,520 level. Meanwhile, the Nasdaq was the least punished of the trio, dropping 12 points but holding onto support at the 2,650 level.
Gold was driven higher by news that oil facilities in the Gulf of Mexico had shut down 28% of production .Crude tagged a peak of $84.10 per barrel, a first currently trading sub 82$ . Weakness in the U.S. dollar and surging crude prices helped gold higher by $10.40 an ounce to close at $739.90 . Other metals were also higher, with silver jumping 36.5 cents, or nearly 3%, to close at $13.470 an ounce, while copper gained 1.9 cents to finish at $3.5945 a pound.
Asian stocksare weaker after Ben \'s testimony yesterday which said a housing recession may deepen.The Chinese have decided to take action and limit investments into Hongkong "There will be caps on the overall amount that can be invested through a system that lets individuals invest in overseas stocks". We may open flat and then give up gains through the day.
As always watch big bro for the signal the worm is about to turn. Support 16120/4650 Resistance 16540/ 4775. PCR 1.71. Weak below / strong above 4745 Nifty Fut. No follow through as expected and that kept the trading range smaller and volatile. Profit sles anticipated.
High Risk/ High Reward
Nifty Sep Fut - Trading Range 4677-4755 Above 4745 Target 4766 Below 4740 support 4707/4682. Sell the break of 4745 /rallies stop 4770 Target 4707/ 4682 or lower.
Escorts Sept Fut Buy above 111 stop 109 Target 113/ 118
Renuka Sept Fut Sell stop 710 Target 675 or lower
Pantaloon Sept Fut Sell stop 570 Target 525 or lower
Bajaj Auto Sept Fut Sell stop 2530 Target 2475 or lower
Try to Sell as close as possible to the SL to minimize losses and maximize profits.
Cheers! 