"Markets have continued their bull run last week, both indices recording new highs, as they are in unchartered territory, finally closed at all time highs for the day, week on friday. Inflation remained unchanged at 4.27% for the week. Earnings season is proceeding in line with expectation, India growth story and promissing sectors performance is always assuring consistancy, which is giving confidence for FIIs in particular, who have already pumped more than what was invested in the entire year 2006 already, as reports came last week.
This week settlement of July series on 26.07.2007 and results of index heavy weights are scheduled. US markets are volatile after touching 14000 + levels on subprime losses which might go upto $100 Billion, as per the estimates by Fed Chairman. The ripple effect of such huge loss to other sectors of US economy, and psychological and sentiment effect on other markets, as most of the markets are moving up on huge FII flows, is the risk faced by world markets at this juncture.
Nifty is likely to close positive on the settlement date this series, over previous month close of 4282, thus, buying calls on every fall, or correction in the money of August Series shall give good returns. Nifty range for this week shall be 4450 to 4650, so buy calls on weakness in the market and puts on rallies for intra day trading.
The day's range for Nifty shall be 4515 (Support) and 4620 (Resistance); Sensex shall be 15300 (Support) and 15720 (Resistance)
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