Market Outlook and Trading Calls for 31May07

Nifty: 4249.65 -43.60 Points Sensex: 14411.38 -96.83 Points

FII Activity:
Cash Segment: 598.51 crores net sellers
Index Futures: 316.07 crores net sellers
Stock futures: 389.81 crores net sellers

Advance Decline ratio: 325:748

Outlook for 31May07:
Yesterday the markets did not perform as expected and recovered a bit too early to fall again in the later session. Today is the F&O expiry day and day traders are requested to stay out as the markets will be very volatile. The global markets are looking strong and we may also come back. If the markets do not perform today then expect correction till 4140 in the next 2-3 days. The IT stocks continue to look weak. There was good selling by FIIs yesterday. For today, the Nifty should face resistance at 4271-4294-4306 and should take support at 4220-4188-4173.

Futures Trading Calls:

Sell BPCL if remains below 347 for target 338.
Sell India cements if remains below 180 for target 175.
Sell PNB if sustains below 513 for target 490.
Sell RPL if sustains below 97.50 for target 93.

Cash Calls:

Buy Ashtavinayak Cine Vision at current levels for target 250 in the short term.

Please Note:
1. 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.
2. The calls provided on day 0 holds good for the next 2-3 trading sessions if the levels holds good.

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.