Market Outlook and Trading calls for 05Jun07

Nifty: 4267.05 -30.00 Points Sensex: 14495.77 -74.98 Points

FII Activity:
Cash Segment: 88.79 crores net buyers
Index Futures: 163.82 crores net sellers
Stock futures: 96.47 crores net sellers

Advance Decline ratio: 410:664

Outlook for 05Jun07:
Yesterday the markets consolidated further continuing the trend from the last week. Today should be the day to bounce back. The global markets are flat and our markets also should open flat and then go down in continuation of yesterday’s trend. One can expect a bounce back in the later session. Chinese markets have crashed another 7% today. Today’s bounce back should be led by ONGC and the banking stocks. Cement stocks are looking weak and will see further correction. For today, the Nifty should take support at 4240-4220-4200 and should face resistance at 4291-4301-4325.

Futures Trading Calls:

Buy ONGC at lower levels with strict stop loss 870 for target 910.
Buy BHEL at lower levels with strict stop loss 1350 for target 1430.

Sell ACC if closes below 834 for target 790.
Sell Grasim if sustains below 2415 for target 2285.

Cash Market Calls:

Buy Bihar Caustics if sustains above 66 for target 70, 80 and 85.
Buy Pyramid Samira Theatres if sustains above 372 for target 410 and 460.

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.