Our indices have opened strong on the back of good global cues, short covering coupled with select buying in index heavy weights lifted Nifty above 5087 crucial level, which pushed the Nifty further up above 5110 in the last half an hour. Nifty firmly closed above 5115 finally at the end of the session surprising every analyst, including me. US markets have rallied overnight on the back of cooling of Crude to $122 and Singapore Nifty futures are currently quoting at 54 points premium should give further gains today at the opening of markets. The inflation data to be released at 12 noon, if comes less than last week or around same level, our markets will be out of woods, and further gains can be expected from next week onwards, as most of the negative news is already discounted and priced in the stock prices now. If there is any disappointment from 'inflation' data, which shall invite further strong measures from Government and RBI would invite selling. Monday is a trading holiday for our markets, which also shall invite profit booking today, since the indices have already posted good gains over previous week so far.
Sensex under Japanese Candle Sticks charts has given bullish reversal signal, which shall give strength for further upward movement, and holding 17000 level is necessary for such further gains. VIX has closed at 29.02 indicating low volatility yesterday; but investors need to be guarded against any sudden developments which can bring the reversal in the markets, as our markets are more or less inter twined with global markets and global cues would weigh more on either side in our markets, since the conviction levels on the equities is quite low with domestic investors and domestic institutions too, in the current scenario. Watch behaviour of indices around 200DSMA levels of Nifty (5187.23) and Sensex(17572.80) for cues!
Range for the Day: Nifty might trade in the range of 5080 to 5180.
Strategy for the Day: Buy 5200 puts on rallies to hedge the portfolios.
1 comment:
Thank you
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