Sharekhan Eagle Eye - June 1 2007

Following global cues the Indian markets kicked off on positive note and touched an all-time high of 4306. During the day we saw a fight between bulls and bears but the
bulls dominated the session by taking the Nifty to an alltime high of 4306. The index finally closed at 4296.

We have observed that in the last few trading sessions the Nifty has taken strong support around 4252 levels, which is around the 10-DMA. It is facing stiff resistance around 4300 levels. On sustaining above this level the Nifty is likely to move towards the 4320-4350 mark. Our short-term bias remains Up with target of 4320.

On intra-day basis or on the hourly chart, the RSI is showing positive bias and we can expect buying to continue for a while. As KST is still not showing any clear direction, one can expect some profit booking at 4300 level, with support at around 20-hour simple moving average of 4274.

SBI looks good with a strong support around Rs1,332 and resistance around Rs1,368. Tata Motors is positively biased with support at around Rs748 and short-term target at Rs776. M&M looks strong with support at Rs753 and resistance at Rs766-773.

Deccan Aviation–Buy
CMP: Rs144.5
Buy Deccan Aviation at the current market price of Rs144.5 with the stop loss of Rs126.9 for the target of Rs199. The stock has broke out of wave 2 triangle.