Our markets opened gapdown, following global cues, as anticipated on friday, but surprising most of the players and analysts, including me, recovered from lows, and finally closed with substantial gains, to end above 50DSMA levels, registering for 4th Consecutive Week. FIIs seems to be buyers on the margin during August'2008, inspite of bad news on US economy and our economy continue to pour in from time to time. If these levels are held from now on 'medium term also will turn positive' registering futher gains. The clearance of Indian Nuclear Safe Guards agreement by IAEA board of Governors with consensus on 01.08.2008, must have enthused the markets. The next level is clearance by Nuclear Suppliers Group, and once it is done, then the US Congress will have to pass it, for operationalising it. US markets have closed with losses on friday night, and asian markets are curretnly trading in negative territory. VIX has closed at 38.49 on friday. Singapore Nifty futures are currently quoting at 29 points discount, indicate weak opening at the beginning.
FOMC meeting tomorrow and the decision on interest rates by US Fed Chief Mr.Bernarke will influence US markets and global markets in general. Street is divided on expectations as US economy is still not out of woods, for raising interest rates, at the same time inflation the 'silent killer' as economists put it, is also a big challenge to be tackled. Volatility in markets continue for some more months, still the clarity emerges on all these fronts.
Range for the Week: Nifty might trade in the range of 4150 to 4650 during the week.
Strategy for the Day: Buy 4500 puts on rallies for intraday trading.
2 comments:
sir,
i could not understand logic behind ur positions? if august settlement closes at 4300 u will loose...
what is the raionale?pls explain
saba
Dear Saba,
4300 is referral level which decides medium term trend during this month. In my view the range for the month could be 4000 to 4700. Thus, to capture the rich premiums during higher volatile times, which we are experiencing now this type of bull and bear spread will give good returns when we follow the markets closely and and close them.
The break even level is 4526 on upside and 4074 on down side.
bkvrkrao
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