Daily Call - July 20 2009

The 9% surge seen last week has wiped out the head and Shoulders pattern that had been formed in the Sensex and the Nifty. Similar moves in the US markets have also made those bearish patterns fizzle out. However, considering the sharp rise in the past week, expecting an encore in this week may be asking for the moon, in a week that is going to witness the longest Total Solar eclipse of this century.

However, the week is set to begin on a positive note. The confidence comes from the fact that more than 3.2 Crore shares have been added in the stock futures. This is the highest single day addition in the month of July. Some of the stocks that we like are Jaiprakash Associates, FSL and Rolta. Among the banks, our interest revolves around ‘Axis’. Traders should keep an eye on international developments, where a $3 billion helpline is likely to be thrown at CIT, the beleaguered US bank. If this fails to materialise, it could jolt the traders.