Market Outlook and Trading Calls for 04Jul07

Nifty: 4357.55 +43.80 Points Sensex: 14806.51 +142.25 Points

FII Activity:
Cash Segment: 445.41 crores net buyers
Index Futures: 954.94 crores net buyers
Stock futures: 74.72 crores net sellers

Advance Decline ratio: 610:479

Outlook for 04Jul07:
The markets held on to its gains throughout the day yesterday displaying good strength. The rally was lead by Bank and Telecom stocks. The global cues were positive yesterday. The US markets closed marginally in positive yesterday and are closed today on account of Independence day. The Asian markets are trading in positive territory. We can expect a positive opening today, but the indices can drift down during the day to either close flat or in negative. The FIIs are buying hugely in index futures and index options especially 4300 puts and are consistently selling in stock futures. This is an indication that the up move is short lived. As I had indicated last month itself, sensex level of 14750 is the level to cover long positions and 14900-15000 is the levels to go short. For today, the Nifty should face resistance at 4377-4390-4400 and should take support at 4330-4312-4292.

Futures Trading Calls:

Buy Sterlite Opticals if sustains above 264 for target 300.
Buy Patel Engineering if sustains above 460 for target 475 and 490.
Buy VSNL if sustains above 506 for target 520.
Buy Cipla if sustains above 220 for target 230.
Buy Escorts if sustains above 124 for target 130 and 134.
Buy Hindustan Constructions at current levels for target 139.
Buy Jindal Stainless if sustains above 152 for target 156 and 162.
Buy Lanco Infratech at current levels for target 237.

Cash Market Calls:

Buy Paramount communications at current levels for target 43 and 46.

Points to Note:
1. All calls are for swing trading and should ideally hit the target within 5-6 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 fails to sustain above/below the mentioned levels on day 1.

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.