Market Outlook and Trading Calls for 07Jun07

Nifty: 4198.25 -86.40 Points Sensex: 14255.93 -279.08 Points

FII Activity:
Cash Segment: 230.97 crores net sellers
Index Futures: 1521.94 crores net sellers
Stock futures: 72.50 crores net buyers

Advance Decline ratio: 236:849

Outlook for 07Jun07:
Yesterday the markets showed first signs of weakness by falling 100 points from the highs. As advised a few days back the SPOT NIFTY level of 4140 is the level to watch out for. If the Nifty CLOSES below 4140 today then there is at least another 100 points downside from there on else, the markets might bounce back from these levels. Watch out for this level before taking a directional call on the markets. The Nifty heavy weights like Reliance Industries and ONGC is trading below their support levels and SBI is right on the support line and on the verge of break down. The ECB has increased the interest rate by 25 basis points to 4% and the fear of similar rate hike by fed is pulling the US markets down. For today, the Nifty should take support at 4161-4138-4118 and should face resistance at 4220-4255-4298.

Futures Trading Calls:

Sell Bank Nifty if sustains below 6270 for target 6000.
Sell SBI if sustains below 1370 for target 1290.
Sell Adlabs if sustains below 533 for target 510.
Sell HDFC Bank if sustains below 1110 for target 1093.
Sell L&T if sustains below 1905 for target 1860.
Sell Power Finance Corp if sustains below 153 for target 146.
Sell Tata Motors at current levels for target 667.
Sell Tata Power if sustains below 576 for target 560.
Sell Zee tele if sustains below 289 for target 277.

Cash Market Calls:

Buy Cranes Software if sustains above 123.50 for target 131.
Buy Ind Swift Labs if sustains above 64.50 for target 75.

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.