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Tuesday, May 20, 2008
Nifty closes above January closing inspite of negative news on inflation which rose to 7.83%!
On last friday, Nifty was slightly volatile but finally closed at 5157.70, above January closing of 5137.45, indicating positive momentum for the markets once again, inspite of inflation data(provisional) released for week ended May 3rd, raising to 7.83% highest in the last 180 weeks. Sensex encountered resistance around 200DSMA exactly, and volatile due to profit booking as there is an extended week end. Monday our markets were closed on account of 'Budha Purnima" holiday. US markets closed flat on friday and made some marginal gains yesterday. Both Dow and Nasdaq closed above 200DMA in the process. Whether further gains can be there from here on is anybody guess, due to lack of positive sentiment for equities around the world.
Crude touched all time high of US $ 127.82, and analysts expectations that it can touch 142 shortly and 200 in a year's time will definitely be bad news for Global economies and markets too. VIX closed at 23.25 a 20% fall from previous day's close, indicates low volatility for our markets. Singapore Nifty Futures are currently quoting at 15 points discount, might give initial weakness for our markets too. The behaviour of indices around 200DSMA Nifty(5190.79) & Sensex(17581.10) need to be watched for the momentum and trend of our markets. Asian markets which closed positive yesterday are trading weak right now.
Range for the Day: Nifty might trade in the range of 5000 to 5200.
Strategy for the Day: Buy 5200 puts on rallies to protect the portfolios.
Posted by BK VRK Rao at 8:49 AM
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