Our indices opened flat to marginally positive initially, and profit booking set in immediately, Sail and other steel stocks corrected 5 to 7%, as predicted in the morning report, on the news that Coke prices will firm up by 200% due to supply concerns during the year; Nifty breached crucial march closing and 5DSMA and 20DSMA placed at 4735 and the total fall of nifty from the peak of yesterday measured 90 points(100 points fall was anticipated). Finally, though the nifty closed above 4700 on adjustment basis, it closed well below 5DSMA(4728.81) & 20DSMA(4736.22); gives strength to bears to hold control of trading. US markets tanked initially after hearing the FOMC minutes, which indicated confirmation of recession in US Economy, but still recovered by the end to close marginally negaive, on the hope of another rate cut in ensuing 30.04.2008 FOMC meeting by 50 basis points. Asian markets have opened mixed and trading mildly positive, and it appears that all markets, devoid of any serious bad news, excepting crude touching 111$ in intraday trade, are in sideways consolidation mode for now.
Nifty volatility Index, will be knows as "VIX" is launched by Sebi Chairman yesterday after closure of market hours, which will measure the 50 stocks options comprising the Nifty movement intraday, in terms of volatility, similar to CBOE volatility index, which is very popular amongst deriavatives traders. Gradually after some time it will be listed and investors and traders can trade on this index too, however, for the present this index gives a measure of volatility quantum, to hedge the portfolios, before hand, and is a good tool for portfolio managers. The measure indicates modernisation of trading practices in Indian Stock markets, which are receiving greater attention and participation, from over seas investors. Singapore Nifty futures are currently trading at 32 points premium, however, Nifty futures closed at discount of 15 points yesterday, might bring in two way movement for the indices, as the fight between bulls and bears continues for some more time. Volatility can be high during this week, as VIX stood at 31.40 points yesterday, as reported, since we have a truncated week with 3 days of trading next week, and at beginning of the week, on 15.04.2008, Infosys will announce its annual performance, dividend and also guidance for the next quarter/year, which might decide the short term trend of the market.
Range for the Day: Nifty might trade in the range of 4600 to 4850.
Strategy for the Day: Buy 4600 calls on weakness and 4900 puts on rallies, for intraday trading.
Strategy for the Day: Buy 4600 calls on weakness and 4900 puts on rallies, for intraday trading.
No comments:
Post a Comment