Inflation, IIP Numbers, & Infosys results scheduled for 15.04.2008!

On last friday, our indices moved in a narrow range, and were volatile due to release of market sensitive information, at intervals, however, at the end of the session closed in positive territory. Nifty had a knee jerk reaction when the Inflation data is realease around 10.40 a.m. shown the uptick to 7.41% highest, went down, only to recover quickly and move up when the IIP numbers shown positive raise to 8.6%. The fears of slowing down in manufacturing data, on the sudden fall of capital goods data in January are now put to rest, though these figures cannot give phillip to bulls to regain control, further damage was curtailed on the last day of the week, which has resulted in positive closing for our indices week on week basis. Nifty has closed above march closings and also above 5DSMA & 20DSMA is positive future. In view of Infosys results on 15.04.2008, before market hours, shorts are built in the counter, as our markets are closed today(14.04.2008) on account Dr.Ambedkar's birth day, profit booking was seen in last half an hour on friday.

US markets tanked on friday, with disappointing results from GE, and fall in consumer confidence index, the asian markets and european markets are down today, since our makets are closed for the day, the effect shall be felt at the opening of trading tomorrow, together with the over night cues from US markets tonight, and Infosys results tomorrow. Another feature is this is shorter trading week with only 3 days of trading, due to intra day trading and volatility shall be high, as our markets are closed on 18.04.2008 also(Mahavir Jayanthi holiday). Investors are not having confidence to keep or build long positions, as falls are steep and raises are small, which is clear feature of typical bear market. Nifty traders dealing in options need to understand that the value of options fall steeply as the expiration date approaches, and naked options are highly risky, and loss of entire capital in no time shall happen, if proper hedging is not taken care.

Range for the Week: This week Nifty might trade between 4350 to 4850.