Trading Calls for 05Jan06

Nifty: 39988.80 -35.25 Points Sensex: 13871.71 -143.21 Points

FII Activity:
Cash Segment: 231.16 crores net sellers
Index Futures: 698.07 crores net sellers
Stock futures: 21.77 crores net sellers

Advance Decline ratio: 5:4 536:451

Outlook for 05 Jan 07:
The markets are back to its usual trading volumes. It is also showing signs of correcting. Yesterday’s low crucial for future trend of the market. If Nifty sustains below 3970 then expect a correction of close to 100-150 points. The Nifty should take support at 3962, 3935 and 3914. It should face resistance at 4000, 4020 and 4040.

Futures Trading Calls:
Sell Bharti Airtel below 624.00 for target 614.00 and below
Sell BHEL below 2265.00 for target 2238.00 and 2198.00
Sell Satyam Comp if sustains below 499.00 for target 484.00
Sell SBI if sustains below 1240.00 for target 1185.00
Sell Bank Nifty if sustains below 5990.00 for target 5940.00 and 5880.00

Cash Calls:
Buy Pantaloon retail above 495.50 for target 540 and above.
Buy Subex Azure above 732.00 for target 750 and 785.

Hold your long positions in (Price in brackets is the stop loss):
Ashok Leyland(41.00), BEL(1316.00), Bharti(624.00), Dr.Reddys(799.00), India Cements(231.00), Jet Airways(630.00), Orchid Chem(196.00), Polaris(164.00), Punj Lloyd(1030.00) and STAR(361.00).

Hold your short positions in (Price in brackets is the stop loss):
HLL(221.00) and Suzlon (1333.00).

Pease note that if no prices are mentioned in brackets then there is no stop loss reqiured currently. Stop losses would be provided at appropiate levels. Keep checking the stoplosses. It is updated everyday.

Disclaimer: The recommendations provided would be purely on my personal opinion and doesnot reflect any fund house interest or my personal holdings. I would not be responsible for the loss in trades undertaken based on my recommendations.