Our markets opened slightly positive and traded in negative territory entire day, inspite of few attempts to come into positive territory, due to profit booking and bear pressure.Both indices have fallen below 200DSMA & 5 DSMA levels. Hangseng though opened positive closed with 2% losses at the end of the session. Steel companies came down, owing to government pressure, to reduce the prices by Rs.4000/- per ton and also assured not to raise for 3 months from now. FMC has suspended futures trading in few agri products, to curb speculation. Rupee further weakened due to rush for US dollars by importers since crude is having relentless raise. Crude touched another new high US $ 123.75, and the fear that the government might be forced to raise petroleum prices dampened the sentiment on our bourses. US markets have fallen below 200DSMA and closed with losses due to weak outlook given by Cisco and raising crude prices.
Nifty took support at 5101 exactly and bounced, the lower end predicted in our yesterday's posting, and finally Nifty closed marginally in negative territory, due to short covering. Nifty futures closed at 16 point premium, VIX closed at 25.06 indicating lower volatility. Singapore Nifty futures are currently quoting at 47 points discount, indicating that 5100 level might be breached today, as the indices have closed for 3rd consecutive day, since they rallied from 18.03.2008, where the dips did not last for more than 2 days so far. Nifty has closed well below April Closing of 5165.90 & now January Closing of 5137.45 indicates bear pressure, and further weakness can be expected today, due to absence of any positive triggers for the markets now.
Range for the Day: Nifty might trade between 5050 to 5200 today.
Strategy for the Day: Buy 5200 puts on rallies and 5000 calls on weakness for intraday trading.
Strategy for the Day: Buy 5200 puts on rallies and 5000 calls on weakness for intraday trading.
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