Market Outlook and Trading Calls for 18Jun07

Nifty: 4171.45 +1.45 Points Sensex: 14162.71 -41.01 Points

FII Activity:
Cash Segment: 44.78 crores net sellers
Index Futures: 271.26 crores net buyers
Stock futures: 187.03 crores net sellers

Advance Decline ratio: 562:519

Outlook for 18Jun07:
The markets last week managed to consistently over the 4140 mark showing some strength. I expect this strength to carry on in this week too and go to much higher levels. Weakness only if it closes below 4110 levels. Banking, Technology and infrastructure stocks are expected to gain in this week. Autos and cement should bounce back as well. The global markets are also supportive with FTSE hitting a 52 week high on Friday. There are rumors on the streets that the sensex will lose 1000 points on Monday because of a CBDT circular. I would advise not to bother too much about this and in case this happens use the fall to enter long positions. For Monday, the Nifty should face resistance at 4188-4220-4240 and should take support at 4161-4145-4126.

Futures Trading Calls:

Buy United Phosphorus if sustains above 321 for target 335 and 345.
Buy Lanco Infratech if sustains above 202 for target 215.
Buy Reliance Industries at current levels for target 1702 and 1722 with stop loss 1075.

Sell Jindal Stainless if sustains below 143 for target 140.
Sell NTPC at current levels for target 148.
Sell Punj Lloyd if sustains below 237 for target 227.

Cash Market Calls:

Buy GTL Infra if sustains above 48 for target 56.25
Buy Guj Florochem if sustains above 705 for target 750.
Buy Hind Organic Chem if sustains above 43 for target 50 and 62.

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.