Trading Calls for 08Jan07

Nifty: 3983.40 -5.40 Points Sensex: 13860.52 -11.19 Points

FII Activity:
Cash Segment: 55.49 crores net buyers
Index Futures: 139.16 crores net sellers
Stock futures: 177.34 crores net sellers

Advance Decline ratio: 530:476

Outlook for 08 Jan 07:
We can observe that the markets are coming down inspite of the advance decline ratio is in the favour of advancing stocks. The correction is severe in large cap stocks than the mid and small cap stocks. The global markets are showing signs of weakness and is also affecting the Indian markets. The Nifty will take support at 3962.00 and 3951.00 and will face resistance at 4006 and 4016. The level of 3977.00 is crucial for the intraday trend.

Futures Trading Calls:

Buy HDFC Ltd above 1640.00 for target 1666.00
Buy HPCL at current levels for target 311.00

Sell Ashok Leyland below 45.20 for target 44.30 and 43.75
Sell Bajaj Auto below 2760.00 for target 2700.00 and 2640.00

Cash Calls:

Buy Rain Calcing above 56.50

Hold your long positions in (Price in brackets is the stop loss):
Ashok Leyland(45.20), Bharti(624.00), Dr.Reddys(799.00), India Cements(231.00), Jet Airways(630.00), Orchid Chem(196.00), Polaris(164.00) and Punj Lloyd(1016.00).

Hold your short positions in (Price in brackets is the stop loss):
HLL(217.60) 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.