Morning Call - May 30 2007

Markets did well Tuesday to absorb any selling pressure that emanated out of the markets inability to pierce the 4300 cordon in the morning. Afternoon saw buoyancy returning to the market leaders Reliance and SBI, which saw positions being built. The engineering giants, L&T and BHEL too were seen flexing their muscles as they entered uncharted waters.

The Roll over in this series has been smooth, with 48% of the positions already being rolled over as compared to 45% last series for a comparable period. The reduction in the premium in the Nifty indicates that the punters will try and hold the Nifty Futures to the 4300 mark. We would advice using the days buoyancy to close the May series contracts by booking profits and will suggest roll over in only the two engineering stocks mentioned above