Outlook for 08Mar07:
The markets have exhibited strength by falling yesterday. This signifies that the markets are bottoming out. All depends on today’s close. If it closes in positive today then bullish reversal otherwise the downtrend continues. On the downside 3550 is a crucial level. If closes above 3655 then the markets are extremely bullish. Shorts have to be cautious from now on. Please book your profits on the short positions, sit on the sidelines and watch the market. You can see that FIIs have bought in all segments yesterday. For today Nifty should take support at 3580 and 3550. On the higher side it should face resistance at 3655-3715-3770.

Futures Trading Calls:

The following stocks have shown signs of bottoming out. If any of these close in positive today then buy tomorrow for short term gains.

ACC, Bajaj Auto, BEML, BHEL, Century Textiles, Dabur, Divis Lab, Guj Amb Cem, HDFC Bank, ICICI Bank, IDBI, IDFC, India Cements, Jet Airways, Polaris, Punj Lloyd, SBI, Titan and VSNL.

One can observe from the above list that cement and banking sectors are the one’s which are bottoming out.

Sell Patni Computers if remains below 392 for target 380.

Cash Calls:

Buy PNB Gilts if sustains above 20 for target 22.50
Buy SB&T Intl if sustains above 37 for target 52.