Trading Calls for 05mar07

Nifty: 3726.75 -84.45 Points Sensex: 12886.13 -273.42 Points

FII Activity:
Cash Segment: 612.70 crores net sellers
Index Futures: 46.79 crores net sellers
Stock futures: 91.16 crores net buyers

Advance Decline ratio: 336:689

Outlook for 05Mar07:
The last hope for Nifty is 3650 on a closing basis. On an intraday basis 3620-3630 a good support. I expect the markets to bounce back from these levels. Nifty futures has huge discount of 37 basis points and this cannot continue for long. The bounce back can go up till 3875 and then the downfall starts again. In the short term the markets are looking weak only.

The cement stocks have corrected sufficiently and are ready for a bounce back. If ACC, Grasim, Gujarat Ambuja and India cement closes twice below the Fridays close then there is no hope for them. It can fall another 30% from these levels.

Futures Trading Calls:

Hold on to the buy calls of Friday till Nifty reaches 3870.

Buy Hindustan Constructions at current levels with strict stop loss 99. If sustains below 99 then reverse position.

Sell BHEL if closes for one more day below 2120 for target 1750.
Sell GMR Infra at current levels with stop loss 385 for target 305.

Cash Calls:

Buy Consol Finvest if sustains above 32 for target 37.

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.