Our markets opened with gap up and short covering in stock futures and nifty futures pushed indices to close at the upper end of the trading range finally, clearing 5DSMA levels. US markets have rallied for the second day, as crude cooled to 129$ intraday, lead by financial stocks. Inflation data was released at 5 p.m. yesterday itself by government which rose to 11.91%, however, the steps taken by government and RBI seems to be working as the pace has slowed down. Nifty futures closed at a discount of 21 points only and Wipro, Satyam results will be announced before market opens. The rally which has begun shall continue today as the inflation data hangover is done with, where as the trust vote, uncertainity lingers, as the numbers are still to confirm clear victory for UPA camp, as of now. Nifty will face resistance at 4050 to 4080 levels, where profit booking can be expected, on weekend considerations. VIX has closed at 35.34 suggests two way movement and volatility cannot be ruled out.
Asian markets are trading in positive territory, and Singapore Nifty futures are currently quoting 38 points premium augurs well for positive opening for certain. CBOE index has fallen to 24 levels suggests US markets are stabilizing at current levels. It is advisable to take profits from weak long positions, and stay in cash as this week end can be enjoyed where uncertainity is looming large.
Range for the Day: Nifty might trade in the range of 3850 to 4050.
Strategy for the Day: Short Nifty futures at the opening with a stop loss of 25 points above day's high, at that point for intraday trading.
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Friday, July 18, 2008
Crude cools to US130$ and US markets rally futher!
Posted by BK VRK Rao at 8:06 AM
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