Market Outlook and Trading Calls for 25May07

Nifty: 4204.90 -41.30 Points Sensex: 14218.11 -145.15 Points

FII Activity:
Cash Segment: 160.31 crores net sellers
Index Futures: 965.75 crores net sellers
Stock futures: 471.69 crores net sellers

Advance Decline ratio: 372:691

Outlook for 25May07:
Yesterday the markets fell in the last half hour of trade against my expectations. I expected the markets to recover to move up and close above 4230. By closing at 4204 the Nifty is showing more weakness than expected. Needless to say, today’s opening will be weak but the point to watch is whether the markets will recover in the later half. The global cues are very weak. Yesterday’s FII figures are also not encouraging. They have sold close to 1000 crores in index futures. I expect good amount of correction in Reliance Industries today. Remember, it was advised to exercise caution and exit long when Nifty was trading at 4280 only. For today, the Nifty should take support at 4173-4157-4140 and should face resistance at 4222-4250.

Futures Trading Calls:

Sell ICICI Bank at current levels for target 899.
Sell IPCL if sustains below 340 for target 329.
Sell OBC at current levels for target 222.50
Sell Reliance Industries if sustains below 1715 for target 1696 and 1674.
Sell Tata Motors if sustains below 701 for target 670.
Sell Tata Steel if sustains below 625 for target 605.

Cash Calls:

Buy Deccan Aviation if sustains above 142 for target 154.
Buy KEI Industries at current levels for target 105.
Buy KLG Systel if sustains above 412 for target 435.

Please Note: All calls are for swing trading and should ideally hit the target within 8-10 trading sessions. Any calls other than swing calls will be specifically mentioned.

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.