All the hopes that some fund buying to prop up the NAVs on at least last day also are watered down, due to panic selling by all classes of investors, as crude makes all time high once again, domestic political uncertainity reaching culmination with CPI(M) confirming withdrawl, if Government proceeds with pursuation / negotiation of Nuke deal. ECB might increase the rate during this week, to check inflation, which inturn weakens the US $ further, also lead to weakness in global markets, as commodities prices may not cool in the near term. Nifty futures closed at a discount if 68 points finally, indicating further weakness. VIX has closed at 30.96, however, intraday high was 64.39 suggests higher volatility to continue.
US markets opened in positive territory overnight and were volatile finally closed flat to negative. Singapore Nifty futures currently quote with 25 points premium to the yesterday's closing of futures, however, well below the spot closing of 4040.55. Nifty level of 4000 is crucial on closing basis today, for any stability or relief rally later, failing which deeper cuts can be expected as huge positions of 4000 puts are built in current series. Asian markets are trading in positive territory at the opening, and indices might trade in a narrow band today, as major selling is done for the present.
Range for the Day: Nifty might trade in the range of 4000 to 4150.
Strategy for the Day: Buy Nifty futures at the opening with a stop loss of 3950, and move the stop loss up as nifty moves up to maximise gains.
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