UPA mustering 275 votes at the end from friends, and cross voting came a clear winner, in the closely watched trust vote, and is quite strong and free to push its azenda in the rest of the time left before next general election, since the 'back-seat' driving from 'left parties' is done with for now. Dr.Manmohan Singh, PM and the industry, business leaders and markets will have a sigh of relief, from threatening drama being witnessed for more than 2 years, ever since 'Indo-Nuke' negotiations commenced. Even if the Speaker, Sri, Somnath Chatterji steps down before monsoon session of parliament, the government can have their speaker elected, thus, immediate elections threat is thwarted for now. Nifty and Sensex have closed strong yesterday for the 4th day in a row, sensing the comfortable victory for UPA government. Crude further cooled down to 128$ overnight, enthused investors in US, markets there though traded in negative for most part of the trading, rallied in the last hour of trading to post substantial gains, augurs well for our markets today. Nifty futures closed at premium of 10 points at the end of the session on adjustment basis, indicates positive bias to continue, with all good cues around! VIX closed at 35.55 yesterday.
Asian markets are trading in positive territory, Singapore Nifty futures are currently quoting at 183 points premium, shall give big gap up opening for our markets initially, and at some point of the day, we can expect profit booking, as the markets will be factoring in the fundamentals of economy, inflation, expectations on RBI Credit Policy etc., Government' s resolve to take the parliamentary majority in its stride before proceeding on Nuke deal negotiations, is good positive news for Power and Infrastructure stocks in medium to long term. Thus, accumulate NTPC, BHEL,TATAPOWER,L&T etc., on every weakness from here on. Nifty shall face the initial resistance at 4315 and then 4460 level which is 50DSMA, where profit booking can be expected. Investors should wait to go long on markets till they cool down.
Range for the Day: Nifty might trade in the range of 4060 to 4460 today.
Strategy for the Day: Short Nifty futures at the opening with a stop loss of 25 points above day's high at the time of creating the position for intraday trading.
3 comments:
Dear Mr Rao ,
I have a thought and wanted to check if conceptually what I am saying is practically possible or not .
Nifty as you said was trading at a premium of 135 points on SGX , where as the premium here is only 10 points .
Considering the above if one goes long on nifty in India and simultaneously short on nifty in SGX .
The difference in premium is fixed gain ?
Rahul .
Well Mr.Rahul,
Singapore Nifty futures are open for trading at 7 a.m.(IST) so u can take advantage for going long or short there, depending on the view on Indian markets which start trading from 9.56a.m.
The premium or discount varies with movement of Spot Nifty and also based on how players view the future to be bullish or bearish.
Hope u got the point across!
bkvrkrao
nope . did not understand . i am talking bout the diff in premium under two exchanges . Was thinking if one can take advantage and fix the diff in premium as the income ?
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