April Month ends on positive note after a dip in March'2008

"Today being the last day for April'2008, and since nifty firmly crossed 5137.45(January Closing) and whether it will clear 5223.50(February Closing) also today and close above it, will be watched by technical analysts, for monthly charts to improve the structure. Singapore Nifty futures are trading with 12 points premium currently, but profit booking can be expected in the later half of trading owing to a holiday."

This is what we have indicated in yesterday's posting! After opening with positive gap making new highs for the month, both indices have become volatile, due to profit booking, and bull unloading, a head of an important event(FOMC meeting) and a holiday on 01.05.2008, finally closed in negative territory. Positive feature being Nifty has held the 200DSMA(5160.86) and closed at 5165.90 at the end of the session, clearing Jan-08 closing(5137.45), a raise of 9.11% month on month, is a positive sign for further raise in the markets from here on sustaining 200DSMA levels, ending the bearish sentiment. However, Sensex is yet to clear 200DSMA which is currently placed at 17488.02, though month on month posted similar gains like Nifty.

VIX stands at 25.16 as on yesteday, being the lowest level since its inception, indicates lower volatility. Nifty futures have closed at hefty premium of 23 points with addition of open interest, indicates positive bias for May initially. FOMC has decided to cut the Fed funds rate by 25 basis points to 2.0% in the meeting conlcuded overnight, meeting the expectatons on the street, and observed that going forward 'inflation' will be targeted, since growth indicators are turning positive, and calmness is returning to financial markets. This statement indicated that Fed has done with the rate cut initiative for some time now, sent US markets give away all gains and closing in marginally negative territory, at the end of the session. Asian markets are trading with losses at the moment, with important events behind us, markets around the world shall now try to guage the corporate performance for this quarter and year, based on the current situation, and the month of May might see churning of portfolios, for identifying the winners in these uncertain times.

The outlook for May month will be posted in the next posting!