Outlook for Wednesday " Sensex creates History - Old records tumble"

"It was a historic day for indian markets, where indices have posted new highs, posted highest ever single day rally, registering record volumes of trading on our bourses. India's steady economic growth, during uncertain times in US and other parts of world, are making western investors to give higer valuations to our stocks and markets, and re-rating is on cards. From now on the pace of the market will certainly will fast and furious, as many other domestic players too jump the band wagon, making small and midcap stocks to post gains. So long term investors should be very careful in stock and sector selection, and stick to basic principle of investing in business not in the stock, which will go up or down, due to sentiment, liquidity etc.,

US markets also closed at all time highs, overnight after FOMC minutes are released, where expectation of further rate cut is being factored in by players by the year end, making investing in stocks attractive. Domestically both Congress and Left have postponed the evil upto 22nd October 2007, as none of the parties are ready for a snap poll, and both the fighting groups on Indo-US nuke deal issue, do not want to see them being responsible for bringing the collapse of the government, and mid term polls. Igate results will be out today, and the bigbrother Infoys results will be announced tomorrow before market hours, the guidance, outlook on US economy as the management reveals through detail discussion after wards, hold the key for performance of Tech sector in the current bull run.

Strategy for the Day: Buy 5300 straddle on Nifty (Buy Call and Put Option) & a straddle on Infosys too on a strike price 2040 at the end of the session before the event.

Support for Sensex shall be 18000 and Nifty 5260 for the day.