March series settlement is behind us. Though volatile through out the day, traded in a narrow range, finally nifty almost closed flat while sensex closed marginally negative. We are almost in tune with asian peers and reacting to US markets, as major players are FIIs, every where. US markets closed negative due to dip in corporate performance, and flat GDP growth etc., Asian markets are trading in positive territory, with gains. Singapore Nifty futures indicate negative opening of 60 points for our nifty, since April futures closed at hefty premium of 24 points, indicate advantage to bears at the opening.
Inflation data shall be released at 12 noon, will influence our markets in a major way and investors will be looking for building positions in April series based on the expectations of corporate performance, taking into account of the advance tax payments already made. 20DSMA placed at 4861.08(Nifty) & 16205.53(Sensex) will offer immediate resistance, and a close above these levels today will augur well for bulls to take the fight further upwards to 200DSMA levels next week.
Caution: Investors should not have any naked positions in derivatives since Nifty is still in indecisive zone, and should completely hedge for protecting the capital and portfolios.
Range for the Day: Nifty might trade in the range of 4725 to 4925 today.
Strategy for the Day: Since the Long April Futures is running into profit currently, a stoploss of 4796.15 is to be employed for today, or hedge it with 4800 put options of April series available at Rs.159/-.
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