Market Outlook and Trading Calls for 11Jun07

Nifty: 4145.00 -34.50 Points Sensex: 14063.81 -122.37 Points

FII Activity:
Cash Segment: 974.78 crores net sellers
Index Futures: 507.55 crores net sellers
Stock futures: 409.77 crores net sellers

Advance Decline ratio: 357:721

Outlook for 11Jun07:
On Friday, the markets lost all its gains from the lows of the day in the last 30 minutes showing further weakness in the markets, but the Nifty managed to close above the support level of 4140. This will help the markets bounce back today. The triple digit gain by Dow Jones and the gains in the other global markets will help our markets to open in the positive today. Long term investors are still advised to stay out as the bounce may not sustain for long. As expressed in earlier posts, the trading range for the Nifty is 4140-4270 on a closing basis and think to go long in this market if closes above 4270 only. Day traders can play for the bounce today. Tech stocks are looking for the bounce back as the rupee rallies past 41.00 against the dollar in intraday. For today, the Nifty should find resistance at 4165-4196-4228 and should take support at 4115-4075-4040.

Futures Trading Calls:

Buy TCS if sustains above 1232 for target 1287.
Buy Aurobindo Pharma if sustains above 777. Exit level will be provided later. Right now, nothing is stopping this stock.
Buy Hindalco at current levels for target 163.

Sell Dr.Reddy’s Labs if sustains below 626 for target 606.

Cash Market Calls:

Buy Emkay share and stock brokers if sustains above 84.50 for target 90 and 95.
Buy GSPL if sustains above 61 for target 65.
Buy Talbros Automotive if sustains above 62.50 for target 65 and 69.
Buy Valecha Engineering if sustains above 255 for target 267 and 283.

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.