Our indices have opened firm and traded strong throughout the session on wednesday, with all round participation, adding open interest position in both stock futures & index futures. Nifty has closed at all time high closing on daily charts, clearing October closing of 5900.65, clearly given a break out on upside, as predicted in our report dated 29.11.2007; while Sensex is still struggling to clear October Closing of 19837.99 (which might take place today)
"Since our indices, both Nifty and Sensex have completed 61.8% of retracement of previous week's range, they should give an upward break out initiating a fresh rally from today which might take the indices to test previous highs in december, with huge volatility."(from 29.11.2007 report)
Wednesday's recovery in asian markets, and rally in European markets and US markets overnight, cofirms gap up opening for our indices today, sustenance of the same for initial one hour, forces short squeeze, as many players are expecting that 6000 level is very difficult to cross. Markets will be firm till 11.12.2007 where FOMC will come out with the decision on interest rates, out look for future. Since, Bull and bear camps are equal in number at this point, huge volatility can be expected.
Strategy for the Day: Buy 5800 calls on weakness and 6000 puts on rallies for quick returns.
No comments:
Post a Comment