Trading calls for 06Mar07

Nifty: 3576.50 -150.25 Points
Sensex: 12415.04 -471.09 Points

FII Activity:

Cash Segment: 731.64 crores net sellers
Index Futures: 87.54 crores net sellers
Stock futures: 46.08 crores net sellers
Advance Decline ratio: 34:1009

Outlook for 06Mar07:

Yesterday the indicies have cut the crucial 200 DMA and today if the markets close below the low of yesterday it signals medium term bearishness. Today the asian markets have bounced back and I expect the same in India as well. Yesterday the Nifty futures opened down with a huge gap of 50 points and there is all possibility that this gap can be closed out today. For today the Nifty has support at 3550-3500-3440 and should face resistance at 3620-3660-3716.

Futures Trading Calls:

Buy CNX IT at current levels with stoploss 4820 for target 5170.
Buy Nifty futures at current levels with stoploss 3505 for target 3680.
Buy Ashok Leyland at current levels with stop loss 36 for target 40.
Buy Divis labs at current levels with stop loss 2610 for target 2900.
Buy IDFC at current levels with stop loss for target 84.50
Buy L&T at current levels with stop loss 1355 for target 1470.

Please remember: If there is a bounce back it is only a relief rally. Use all higher levels to short sell. Exit the above trades if there are decent profits. Do not wait for the targets.

Sell ACC on every higher level with stop loss 880 for target 690.

Cash Calls:

Buy TN Petro products if sustains above 19 for target 23.