Market Outlook and Trading Calls for 20Jun07

Nifty: 4214.30 +67.20 Points Sensex: 14295.50 +215.36 Points

FII Activity:
Cash Segment: 171.71 crores net buyers
Index Futures: 744.30 crores net buyers
Stock futures: 108.42 crores net sellers

Advance Decline ratio: 613:461

Outlook for 20Jun07:
Yesterday our markets bucked the global trend to close with gains. I cannot think of any other reason other than short covering for this move. The trimming of Nifty futures discount from 20 points to 1 point proves this point. The advance decline ratio shows that the gains were largely confined to the large cap stocks. It was the beaten down stocks like the reliance Industries, ONGC and the banks which helped in taking indices higher. The cement sector is looking for a bounce and can do well in this week. The US markets closed marginally in the green yesterday and the Asian markets are also trading in green at this time. It appears that we will continue from where we left yesterday and should open in the positive. Technically, closing of spot Nifty and Nifty futures above 4200 is a good sign. For today, the Nifty should take support at 4245-4270-4295 and should face resistance at 4196-4170-4140.

Futures Trading Calls:

Buy ACC if sustains above 855 for target 895.
Buy Century Textiles if sustains above 637 for target 655.
Buy Grasim if sustains above 2465 for target 2530.
Buy ICICI Bank if sustains above 960 for target 995.
Buy India Cements if sustains above 183 for target 190.
Buy India Infoline if sustains above 682 for target 740.
Buy Siemens if sustains above 1360 for target 1400.
Buy Sterlite Industries at current levels for target 570 and 585.
Buy Union Bank if sustains above 133 for target 140.

Sell TCS at current levels for target 1125 with strict stop loss 1180.
Sell Amtek Auto if sustains below 403 for target 396.

Cash Market Calls:

Buy Cambridge Solutions if sustains above 140 for target 147 and 155.
Buy Transport Corp of India if sustains above 98.50 for target 105.

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.