Nifty opened in positive territory and traded firm for some time, and on the news from government that the prices of petroleum products will not be passed, due to fear of raising inflation, and FM reportedly unwilling to raise the limit of compensation through "Oil bonds" above 57% of the losses being suffered by Government Oil Marketing companies, dampened the sentiment and invited selling and bull unloading in Oil sector stocks, which finally resulted in Nifty and Sensex closing in negative territory. Crude touched another record high of 126.98$ yesterday, US markets also were volatile and closed mixed. VIX has increased another 6% and closed a 33.43 indicates that volatility will continue to be high. Singapore Nifty futures are currently trading at 6 point discount and asian markets are mixed.
Nifty has closed below 5DSMA which is currently placed at 5034.05, however, 20DSMA placed at 4913.44 should offer support on any weakness today. Below 4900 the bear pressure shall increase further and investors should need to exercise extreme restrain in picking momentum stocks, in such development.
Range for the Day: Nifty might trade in the range of 4900 to 5050.
Strategy for the Day: Buy 4900 calls on weakness and hold them till the week end.
1 comment:
Thank you verymuch
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