Our indices have opened weak and traded in negative territory through out the day, Nifty finally managed to close above 5100 at the end of the session on adjustment basis. Short build up and long unwinding is seen in stocks and nifty. Indices have encountered resistance around 200DSMA as anticipated, with US markets unable to hold 200DMA in the sell off overnight, asian markets are already trading weak. Singapore Nifty futures are quoting at 70 points discount currently, while VIX moved up by 7.5% to 24.99, indicate gap down opening for our markets today. Bank of Japan has left rates unchanged at 0.5% yesterday. RBI Governor Dr.Y.V.Reddy re affirmed that the current level of inflation is totally unacceptable and medium target should be 3%. How it can be achieved in the current scenario of crude raising continuously and rupee weakening, which shall contribute to expansion of fiscal deficit during the year is the mute point! Whether some more measures are in store from RBI and Government suddenly? One cannot rule out!
17200 on Sensex and 5100 on Nifty are crucial technical levels need to be held, if bulls wants to carry the momentum, failing which indices might once again re test 16500 and 4900 respectively before expiry of the current series. Any support around 5000 levels on Nifty today, shall be a good trading opportunity in index heavy weights or nifty itself on long side. Volatility shall once again increase from now on, as roll over of positions to next series shall comence. Retail and small investors should refrain from trading in the current scenario.
Range for the Day: Nifty might trade in the range of 5000 to 5150.
Strategy for th Day: Buy 5000 calls on weakness for quick returns in intra day trading .
1 comment:
Thank you for your valuable opinion
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