Bulls will have the last laugh!

Our markets were volatile in tune with asian peers, finally closed flat to marginally positive territory, as investors booked profits intraday, a head of an important event..FOMC meeting! Roll over of Short positions to next month series were seen which prompted the upsurge initially as shorts in current series are covered first and then in the last hour of trade, they are created in the next month series. Such volatile movement is common in the pre expiry period. Better than exprected results from Goldman Sachs and Leeman Brothers, before trading hours in US markets, and expectation of substantial rate cut by Fed made European markets to trade strong and close firmly with substantial gains. US markets have opened very strong Dow surging 300 points in the opening trade and Fed announcing 75 basis points cut bringing the rate to 2.25 in finality, helped the indices to post one of the largest gains in a single day ever!

Whether these measures will bring the economy back on track, arrest the financial crisis, and bring back investor confidence in US markets can unfold over a period of time. As far as today's trading, Asian markets opened strong and trading firm, on strengthening of the US $, and Singapore Nifty futures are trading at a premium of 236 at present to yesterday's closing of Nifty, augurs well for our markets. There will be a gap up opening, due to short squeeze, the normal trading hours begin from today, should help stability for our markets. Previous Week's closing of Nifty 4745.80 & Sensex 15760.52 would offer stiff resistance today, and profit booking by traders, and investors since our markets are closed for 2 days from today, shall bring in volatility. If our markets close above the previous week's level, with volumes and all round participation today, then we can assume that we are out of woods for this month, at least.

Range for the Day: Nifty might trade in the range of 4500 to 4750 during the day.