Rajat Bose of rajatkbose.comMarket Outlook for August 12, 2016NiftyThe index posted a strong recovery in the last 75 minutes of trade only to close just 9 points short of the day’s high; for the moment, it appears as if a recovery appears to be on the cards and more so because today is a Friday. To show real strength during the day, it needs to stay above 8610. If it were to do so, it could scale up to test 8640 – 50 points kind of a range; once it takes out even that, its next destination would be 8690-8720.Downside levels may not be seen in a hurry, and if it starts going down below 8540-8520 range then we may even see 8480-8450 kind of range shortly.Trade recommendations:Buy at current price and/or on any dip to 8575-8550; stop loss below 8545.Bank NiftyThere is a virtual disconnect here, the Bank Nifty shows quite a bit top-heavy; it could come down to test levels close 18000. However, so long as the Bank Nifty does not fall below the 18500 mark then we can expect a smart recovery. Since the index could not take out the 19000-mark in any decisive manner, the index would attract fresh selling, courtesy the distribution pattern that is getting formed since early July. Trade recommendations:Buy at current price; stop loss below 18475; target 18890. Stock recommendations:1. Dewan Housing Finance (258.75): Buy with stop loss below Rs 253 for targets of Rs 263 and Rs 267.2. Dolphin Offshore (87.45): Sell with stop loss above Rs 90.50 for target of Rs 83.50.Statutory disclosure: The analyst and his associates has none of the above. Their respective families, however, do not hold any shares either jointly or separately in any of the stocks mentioned above.
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