Market Outlook and Trading Calls for 08Jun07

Nifty: 4179.50 -18.75 Points Sensex: 14186.18 -69.75 Points

FII Activity:
Cash Segment: 287.17 crores net sellers
Index Futures: 1613.21 crores net sellers
Stock futures: 106.10 crores net buyers

Advance Decline ratio: 393:673

Outlook for 08Jun07:
Needless to say, the markets will open in the negative today. The global markets are weak and most of them are down more than 1.5%. Yesterday, even though markets behaved in the manner which suggested a bounce back the FII’s were selling and have sold more in index futures than the day before. It did take support at 4140 and bounced back but it will definitely test those levels again today. On an intraday basis the Nifty will definitely trade below this level but the point to watch is whether it can close above that level. I expect some short covering in the later session and the markets can bounce back from the lows. If the spot Nifty closes below 4140 then expect another 100 points correction from those levels. Bank, auto and steel stocks are looking weak. For today, the Nifty should take support at 4148-4130-4104 and should find resistance at 4184-4224-4256.

Futures Trading Calls:

Buy IFCI if sustains above 52.25 for target 54.75
Buy Mphasis BFL if sustains above 334 for target 350.
Buy Sesa Goa if sustains above 1725 for target 1810.
Buy Wipro if sustains above 552 for target 580.

Sell Bajaj Auto if sustains below 2110 for target 2990.
Sell Jindal stainless at current levels for target 139 and 133.
Sell Nagarjuna Fertilizers if sustains below 21 for target 19.60
Sell Voltas if sustains below 92 for target 89.

Cash Market Calls:

Buy Balaji Telefilms if sustains above 218 for target 250.
Buy Sical Logistics if sustains above 275 for target 298.

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.