Anticipated Market Movement as on 06.06.2002

1) ANTICIPATED MARKET MOVEMENT : MACD indicators of all 3 indices (Nifty, Sensex & BSE 100) in daily charts have given buy signals yesterday hence confirming the technical rally which started on Friday 31^st May 2002 & which was anticipated by us right in the beginning of this week (refer weekly writeup of 3^rd June 2002) ; now next up targets of indices are 1091 .08 –1092 .10 & 3332 .73 – 3350 .05 which should be achieved within a week and where good profit booking should emerge– in the meantime part profit booking should be done in the first half of the trading day today as indices have become quite over bought in the short term hourly charts and one should wait for a minor down correction to buy again – this minor down correction could bring indices down to day before yesterday’s highs of 1047 .40 & 3195 .60 – in any case one should buy on declines till up targets mentioned above are achieved.

Coming to discuss of more bullish scenario – that will emerge only when indices close on any day end above the resistence lines of declining channels in which these are moving for last 14 weeks – values of these resistence lines are 1108 .00 & 3355 .00 for today and these decrease by 1.44 points & 6 .21 points each day for Nifty & Sensex respectively.

2) GUIDANCE FOR INTRA-DAY TRADERS: Intraday trading is not the preferred kind of trading. We are giving below anticipated resistence and support levels of 44 active scrips for guidance purposes only – please note that anticipated success rate of Resistence 1 (R1) & Support 1 (S1) is only 60 to 75 % & that conservative players should trade only between range of R1 & S1; only those who trade on delivery basis could wait for R2 & S2 which anticipated success rate should be 50 % .

For 6^th June 2002 :