Our markets have opened in positive territory and traded two way for most part of the day, till noon, when European markets opened in negative territory, once again fund selling brought indices like 9 pins, breaching important levels of 4225 and 14150 too. Indices are making new lows daily and the volatility index VIX touched highest point 67.52 suggests that trouble is not yet over. VIX closed at 34.05. While roll overs on short side are only happening for now, the news flow is completely negative and disturbing for equities.
RBI has increased Repo rate by 50 basis points with immediate effect and CRR by 50bps in two tranches effective from 5th July'2008, to tighten the monetary situation. FOMC meet concludes today and the decision on interest rates by Fed along with the statement on the economy, inflation etc., will be known late in the night. Another crucial UPA-Left coordination committe shall meet today, to decide on modalities of proceeding with negotiations on "Indo-Nuke" deal. Markets might bottom out around the current levels, but the volatility will hurt traders and investors very severely, as the range of movement of indices will be very broad. US markets have closed with losses a head of FOMC meet outcome, and asian markets are trading in negative territory. Singapore Nifty futures indicate discount of 42 points currently, thus, gap down opening can be expected.
Range for the Day: Nifty might trade in the range of 4135 to 4345.
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