Market Outlook and Trading Calls for 04Jun07

Nifty: 4297.05 +1.25 Points Sensex: 14570.75 +26.29 Points

FII Activity:
Cash Segment: 373.38 crores net buyers
Index Futures: 257.94 crores net buyers
Stock futures: 57.83 crores net buyers

Advance Decline ratio: 613:449

Outlook for 04Jun07:
Our markets have consolidated enough in the last week. Now is the time to gain momentum and move up. The Nifty has to close above 4300 and the Sensex should hit the all time high in the next two days. The global markets are supportive and should help us move up. The Banking sector is expected to do well in this week and the Tech sector should bounce back as the dollar is expected to bounce back against the rupee. Aviation sector is the one in news and will continue to do well. The cement sector is under a bit of consolidation. The fertilizer stocks are looking upwards. On the flip side, 4240 is an important support on a closing basis. The markets can lose the upward momentum if closes below this level. For Monday, the Nifty should face resistance at 4310-4330-4365 and should take support at 4271-4247-4232.

Futures Trading Calls:

Buy Bata India if sustains above 192 for target 203.
Buy Lanco Infratech if sustains above 183.50 for target 195.
Buy Petronet LNG if sustains above 57.25 for target 59 and 62.
Buy SBI at current levels for target 1500 with strict stop loss 1335.
Buy Sterling Biotech at current levels for target 182 with strict stop loss 162.50

Cash Market Calls:

Buy Dewan Housing if sustains above 82.50 for target 88.50 and 96.
Buy Gujarat Ambuja Exports if sustains above 33.50 for target 38 and 42.
Buy ITI Ltd if sustains above 51 for target 54 and 66.
Buy Lyka Labs if sustains above 41 for target 43 and 49.
Buy Suven Life Sciences if sustains above 40 for target 45.

Points to 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 sustains above/below the mentioned levels.

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.