Market views June 18, 2008

We managed to close above our first resistance at 4630 yesterday. So we are on course to test our next one at 4730. Near here it will be better to exit all positions once and sit on the sidelines to see where the market is headed next. Currently, it looks like we may resume our downtrend once we reach this level (4730 - 4750). If we take a look at yesterday's rally, its been purely driven by short covering and select buying in banking scrips. So lets be cautious. This rally is still a pullback rally only and not the one to build positional longs. We don't have really encouraging cues to start the day with. We might get a flat opening and maybe move up intraday.

STOCK PICKS
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Yesterday DLF hit our stoploss, RNRL could not sustain above 94 so it wasnt a buy and Infosys and bombay dyeing hit our first targets.

RNRL call is still open. Refer to yesterday's post for levels.

RCOM - CMP: 530.05 SELL target 522. SL - 533

SBI - CMP 1387.5 BUY above 1406 Target 1449 SL - 1400

RELIANCE - CMP 2332. Short around 2350 SL - 2360. Target - 2250, If it manages to break 2350 it will reach 2386 where it will face stiff resistance.

SUZLON - CMP 244.25 Short on rise with SL at 254 for target of 240, 229