Trading Calls for 05mar07

Nifty: 3726.75 -84.45 Points
Sensex: 12886.13 -273.42 Points

FII Activity:

Cash Segment: 612.70 crores net sellers
Index Futures: 46.79 crores net sellers
Stock futures: 91.16 crores net buyers
Advance Decline ratio: 336:689

Outlook for 05Mar07:

The last hope for Nifty is 3650 on a closing basis. On an intraday basis 3620-3630 a good support. I expect the markets to bounce back from these levels. Nifty futures has huge discount of 37 basis points and this cannot continue for long. The bounce back can go up till 3875 and then the downfall starts again. In the short term the markets are looking weak only.

Cement stocks have corrected sufficiently and are ready for a bounce back. If ACC, Grasim, Gujarat Ambuja and India cement closes twice below the Fridays close then there is no hope for them. It can fall another 30% from these levels

Futures Trading Calls:

Hold on to the buy calls of Friday till Nifty reaches 3870.