Our markets have turned volatile, due to the muted Q4 numbers from TCS, the largest IT company from our country, and their cautious outlook for the next quarter, have dampened the sentiment of investors, who were riding the IT wave since the announcement of good set up of numbers by Infosys, and confident outlook by other majors viz., Wipro & Satyam Computers. While TCS alone lost 11% from previous close, the highest ever since it listed on bourses in 2004, the rub off effect is felt on entire IT pack, which was down anywhere from 3% to 6%, across board.
Crude touched all time high of 119.90$ on the increase in demand, and due to weakness in dollar, which has spooked US markets, where Q1 numbers from major companies fail to meet street expectations, and are unable to give confident future performance, in view of the Economic Slow down in US already being experienced. Results of Reliance Industries for the entire year have revealed sterling performance, but the margins looking down for the first time in last 9 quarters. The stock saw profit booking a head of expiry of current series. ONGC is slapped with a notice by IT department to pay tax on subsidy provided to Oil Marketing Companies, is a peculiar issue facing the company, the outcome of this litigation, would set the clarity on how government will deal with the issue of control of petro products in future. CRISIL down grades GDP growth forecast for this fiscal to 8.1%, due to raising commodities prices, inflation.
Nifty VIX has jumped a whopping 30.85% to settle at 39.62(the highest so far after its introduction) yesterday, indicates return of high volatility, as crucial technical levels are being approached. The band of 5080 to 5140 on Nifty offers stiff resistance, as 200DSMA also falls in this region, and is a heavy supply zone, where bears will gain upper hand, with lots of negative cues floating around, and crucial events to unfold during coming 7 days from now on. Singapore NIfty futures are trading at a discount of 10 points discount currently, and indicate weak opening of our markets, as asian markets opened in negative territory but recovering slowly.
Today being the penultimate day of the current series, saw a good roll over of Nifty to next month series already, while stock futures rollover lag behind, owing to mixed performance for Q4, and due to ensuing important rate sensitive announcements expected from RBI and FOMC. Nifty & Sensex have closed above 50DSMA firmly due to a 6 day strong rally on indices, which have seen some two way volatility yesterday.
Range for the Day: Nifty might trade in the range 4950 to 5100.
Strategy for the Day: Buy 5050 puts on rallies and 4900 calls on weakness for intra day trading.
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