Premarket Analysis & Intraday & Magic calls for 07 July

Dear Members,

Markets ended with green in the last trading , as the inflation figures came below the 12 % which we said on that day, political support by SP also added stability in the government and so the markets did well.

We see markets have bottomed out intermediately and we expect a technical recovery on cards, the positive news for our markets are ,

The markets are fairly valued
The political stability
Crude may come down in 2-3 months time
Inflation expected to come down to single digit in next 3-4 months

One should take a cautious approach and long term investors to take position in the market on every dips till 12500 levels. The difficulty for the short term investors exists as the volatility in the markets to rule for some more time , short term investors to book profits on every rise and have to wait for declines in the markets.

One should avoid Banking and reality space for some more time as the RBI interest rate hike make come sooner or later, but some stocks are available at dead cheap price for pick up ( SBI , ICICI , YES ) and in Reality ( DLF, UNITECH , PARSVNATH , HDIL)

We expect markets to end this week in the positive note after seven weeks of blood bath , investors can buy stocks today and can sell by the end of this week before any bitter news comes in , Indian will be signing the nuclear treaty which is boost to markets , but if any sign of political instability kicks in we may see a massive sell off in markets

Today we expect markets to be in tight range and bulls may take control at the end of the day , but we advice members to be cautious as the bears were in upper hand for quite some time. Trade in small quantities.

Sugar stocks looking sweet , so grab them.

7st july Midday Trading Calls. PYT.