BUY Nifty 4300 CE Around 40-50 Level TGT 90,120,145 Sl 30
BUY IFCI FUT Around 46-48 TGT 53,57 Sl 43.5
BUY RPL Fut Around 169-171 TGT 177,181.5 Sl 166
Hold This Position Till Expiry 26 June

Medium Term Investment
R Com

I would like to substantiate my liking with following points.

1. It will roll out GSM services from December onwards. This will be a major trigger for new growth opportunities. Reliance Communications is the only national operator providing GSM and CDMA services.

2. Telecom story is still intact. New subscriber numbers are still encouraging.

3. It entered into lucrative IT space by announcing Reliance Technology Services- another growth opportunity.

4. It will soon launch its DTH service through “Big TV” brand.

5. Reliance Communications will list its global arm “Globalcom” as a separate entity.

6. It will list tower business (Reliance Infratel) within a short period of time. Both the above listings will unlock value in this communications giant.

7. Broadband usage will increase in the coming years.

Technically is weak for short term. But an excellent pick for long term.

We would keep a price target of Rs.1100/- in a period of 12 - 18 months.

Hotel Leela.

The company has four fully functional hotels all over India i.e. at Mumbai, Goa, Bangalore & Kerela.
It comes in a luxury Hotel segment. Its Bangalore property has been rated as one of the best business hotel.
It current market capital is 1805.21 crores (as on 6th May 2008) with a PE ratio of 25+ per share of face value of Rs.2/-.
The company is planing to double the capacity by 2010.
Logically if it starts four new hotels their cost of building, licensing, etc would be approx 500 crores per hotel i.e. 500 x 4 = 2000 crores.
And at present the company's market capital is 1805.21 crores which would add 2000 crores to it.
So assume the market cap is 4000 crores approx which surely double the stocks value by the same period.
Another key factor is the boom in reality segment , the zooming land rates.
Development in economy and development in tourism will add to scrips hidden value.
So keeping the long term factor in mind one can accumulate this scrip at any rate within Rs.50/-.
I would keep a price target of Rs.150/- approx by the end of 2009.

The Key Wins in the Stock Market- Learn to lose
One basic difference between a successful and unsuccessful trader is the talent to come clean with that at what time one is wrong. A successful trader will cut their losses before they will get out of hand. An unsuccessful trader will let their losses grow in the false belief that things will lift up.
One should determine his stop-loss point before entering a trade. Always remember that your stop-loss point ought to be decided so those prices with the intention of you are keen to sell your stock at should things turn bad. The price you make a choice will diverge depending on your financial position and the particular stock being considered.
MARKET OUTLOOK
UPA & Left meet on nuclear treaty and inflation figures in next week will likely to rule the market sentiments over next week.
The world is facing economical crisis due to higher commodities prices particularly crude oil and credit market losses. ``I should not expect any sharp rally until fall in crude oil prices’’
Nifty has resistance at 4,563, 4,590, 4,614, 4,643, 4,746 and 4,828, while the support levels are placed at 4,500, 4,468 and 4,370.
Sensex 15,350 is important level the market should sustain. Further on the upside 15,555 and 15,750 is the maximum target.
Trading Call
Buy Hotel Leela June Future around 40 for Target 45-48 Stop Loss 37.5
Buy Nifty June 4300 PE Around 45-50 For Target 90, 110,145 Stop Loss 25

Nifty has resistance at 4,563, 4,590, 4,614, 4,643, 4,746 and 4,828, while the support levels are placed at 4,500, 4,468 and 4,370.
Sensex 15,350 is important level the market should sustain. Further on the upside 15,555 and 15,750 is the maximum target.
If Nifty Trade Above 4560 Buy Nifty 4600 Call For a Tgt Nifty 4625-4640 Level.

If Sensex Close Above 15350 On weekly Basis For Further upside.
If Sensex Close Below 14900 weekly Basis For Further downside.

The Reserve Bank of India has hiked the repo rate by 25 bps to 8% from 7.75% to contain inflaiton concerns.There has been no change in reverse repo rate.

The next trigger for the market is the industrial production numbers for April 2008, which the government will unveil on Thursday, 12 June 2008 will play a crucial role and the market may also be keeping a watch on this to take further direction.Also the corporate advance tax payments for the first installment which falls due on 15 June 2008 will be another near term trigger for the market. The income tax law requires a company to 15% the estimated tax liability for the year as advance tax in the first installment.

Intraday Trading Call
SELL LT Around 2677 Tgt 2618,2567,2525,2420 S.l 2720
SELL RIL Around 2280 Tgt 2218,2183,2135 S.l 2318

Wednesday`s trading pattern is very essential to guess about short term trend

Nifty has major support at 4,370, 4,227, and 4,032-4,060 levels. Any weekly closing below 4,574 is another indication of fresh weakness. On the other hand, the resistance levels are placed at 4,515, 4,569, and 4,651-4,669

Intraday Trading call

Buy Sail Fut Around 157 Level Tgt 165,169.5 S.l 154.5

Medium Term Investment
Buy RPL (Reliance Petroleum Limited)

I would like to substantiate my liking with following points.

1.Since the commissioning of the new refinery is around the corner, this stock will be in news for all the good reasons. Refinery is expected to be commissioned before the scheduled time of December 2008.
2.Crude hitting all time highs (I personally don't expect it to stay at these levels and anticipating a correction; In technical terms, I'm seeing a blow-off setup), and hence refinery margins would be high.
3.Even if crude corrects from these levels, it is difficult to see it going below US $90 - US $ 100 per barrel in the coming days. Hence, refinery margins would remain high and stable atleast for the next 2 years.
4.Since, RPL refinery has got a SEZ status, I don't think, windfall tax - what Left parties are crying for [without tears :)] will be applicable to RPL.
Hence, I expect RPL to be a market outperformer for the next 6 months and multibagger for the next 2 years.

If Sensex Trade Above 15350 level for any upside movement.I feel market will be range bound between 14,700 to 15,400 levels in the absence of favorable events.
Weekly Level
If Nifty Close Below 4450 The next tgt 4200
If Reliance Close Below 2118 the next tgt 1985,1925

A spike in oil prices by over $11 in US markets Last Friday, Dow recording its worst fall in a year.
The Dow Jones industrial lost 395 points, or 3.1%, its biggest one-day decline since February of 2007.The broader S&P500 index lost 3.1%, while the Nasdaq lost 3%. The S&P and Nasdaq witnessed their biggest declines in four months.

Fears that the US economy is in recession seem to be getting confirmed with Unemployment rate rising to a 20-year-high to 5.5% in May from 5.0% in April.

Morgan Stanley had circulated a note that stated oil could hit $150 a barrel by July 4.

On Monday if Sensex Break Below 15295 Next tgt Around 14778.

Inflation data will be key trendsetter on tomorrow. 4,600 may be a major support and on upside 4,725/4,765 levels are important level.