Dated 1st September, 2008

Last week :
Markets gave a surprise rally on the first day of the new settlement with a more than 500 point rise in Sensex. Markets were trading weak throughout the week but wiped out all the losses with a stupendous rise on Friday to end the week with a percentage points on Sensex. Banking stocks were the top performers lead by HDFC Bank, which rose close to 8%. Bank Nifty rose more than 5% week on week. Satyam, PNB, M&M, HCL Tech and SAIL were the top Nifty gainers while Reliance was the major loser with a 4% fall.

Prediction for the Coming week :
The rally of Friday was a real surprise. Our markets out performed all other global markets at the slightest opportunity. Nifty finds support at 4280-4300 in the short term. Markets might open with a gap down but may recover from 4300. We expect the support of 4280-4300 to hold in the coming week, unless there is a very strong bad news waiting. 4400-4420 on Nifty looks a strong resistance and if it manages to breach this level 4500 and even 4580 looks a possibility. Exit long positions if Nifty drifts below 4280. Short positions may be contemplated below 4250 with a stoploss of 4300. For the week we see a trade band of 4280 – 4420 on Nifty.

BUY
Infosys Tech @ 1745-1750 Tgt 1805, 1840 SL 1730
Indian Bank @ 122-123 Tgt 131, 137 SL 120
Patni Computer Above 234 Tgt 248, 270 SL 227
Lupin @ 727-728 Tgt 745, 768 SL 720

SELL
GE Shipping @ 390-392 Tgt 380, 364, 337 SL 396
Maharastra Seamless @ 290-292 Tgt 281, 274 SL 296
Grasim @ 1960-1970 Tgt 1910, 1820 SL 1990
IVR Prime @ 170-172 Tgt 163, 156 SL 175
Hindustan Oil Exp @ 124-126 Tgt 118, 110 SL 128

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