"TRADING IDEA FOR WEDNESDAY (14.07.2010)"

NIFTY FUTURES opened Wednesday on a flat note @ 5375 in line with the US (Tuesday's trde) & Asian markets. It spent the whole day following lower than expected earning numbers for Q1 by the IT bellwether, INFOSYS consolidating in a narrow range of 25 points only, and a sudden rush of buying in the late session, which lead Nifty Futures to an Intraday high of 5422. It finally closed the day near the session high at 5419.

Slow and steadily, Nifty Futures is climbing higher toward the immediate target of 5500 mark. On the upside, with a continuous positive momentum, we may see the levels of 5600–5610. On the downside, the near term support now comes in at 5320 mark. Only a close below the 5200 level will end the short term positive momentum and will take the Nifty Futures back towards the 5000 mark.

MAJOR NEWS & VIEWS:

Infosys Technologies - results disappoint

Sensex, Nifty attain 29-month closing highs; realty shares soar

SGX Nifty jumps - market to touch highs again

Interest rate sensitive realty stocks jumped on speculation that the government will soon announce a hike in foreign direct investment in the real-estate sector whereas bank stocks rose on a pick up in credit off take. The market appears positive at present based on global cues coupled with satisfactory progress of monsoon.

Slow down in IIP, earnings and growth are seen. Hike in Inflation and Interest rates are also in cards.

FOR TODAY: The European equity markets recorded strong gains on Tuesday. The FTSE, CAC and DAX gained 2.01, 1.96 and 1.87 percents respectively. The Dow rose 146.75 points, or 1.44%, to 10,363.02. The Standard & Poor`s 500 index rose 16.59 points, or 1.54%, to 1,095.34, while the Nasdaq composite index rose 43.67 points, or 1.99%, to 2,242.03. Indian ADRs end higher. SGX NIFTY is up around 40 points. Nifty Futures is Bullish.

Nifty July 2010 futures are at 5,418, at a premium of 17.35 points compared to spot closing of 5,400.65. Turnover in NSE's futures & options (F&O) segment surged to Rs 80,272 crore from Rs 74,543.90 crore on Monday.

CALLS FROM BROKERS:

FAIRWEALTH SECURITIES:  Godrej Industries - Buy above Rs 182 for target of Rs 186-192 and stop loss of Rs 178.

Sintex - Buy above Rs 338 for target of Rs 344-350 and stop loss of Rs 332.

SAIL - Buy above Rs 200 for target of Rs 204-209 and stop loss of Rs 196.

In my view, ANY DIP around 5355/5360 level should be used as a buying opportunity for a decent Target of 5450 level. Volatility may be seen.