Our markets were volatile a head of derivatives settlement today, as European markets opened in negative territory, selling emerged pushing markets to close in negative territory below crucial level of 4300 on Nifty. Roll over of Nifty to September series and other active stocks was muted, as indices have no clear direction for the past few weeks and moving side ways. Global as well as domestic news is unable to give necessary thrust for neither bulls nor bears in a big way. The mood of the market is showing apathy to equities from retailers and traders too. PSU banks offering 10% interest on one year term deposit appears to be a safe bet for most of the investors in such an uncertain environment, which might continue in to next year too, as being assessed many analysts, where capital protection is guaranteed.
BSNL has postponed the discussion on the proposed IPO in recent board meeting. Tatamotors being frustrated with the political troubles being faced at Singur plant of Nano, have decided to shift the factory to other location (states) if West Bengal Government cannot protect its employees working there. The vendors too expressed solidarity with Tatas and decided to move even if they have to suffer losses on their existing investment of 1500 crores. Dollar started strengthening against Euro as European economies faulter on growth, with raising inflation, crude prices. Infosys has bid for acquiring AXON of UK in all cash deal of 737$ millions, shows that indian tech sector's confidence of better performance even in these turbulent times. Inflation data will be released after market hours being expected to be 12.79% though moderating not showing signs of peaking out. Crude touched 119$ on supply concerns is in sideways band after it has hit 148$ in 2008. Rupee has touched 44 against $ is bad news for FIIs, who are net sellers in 2008 so far, and for indian economy, though it is sweet news for Tech sector and Export oriented industries and business.
US markets have posted gains overnight, and asian markets are trading with gains currently. VIX closed at 32.80, but the day's high shot up once again to 76.52, indicating higher volatility. Nifty futures premium has turned into 2 points discount for September, indicating shifting of short positions to next month series. Rollover of Nifty has completed 43% by yesterday, thus, huge positions need to be rolled over today or might be allowed to expire as generally 75% rollovers take place at the end of the settlement. Thus, one can expect wild gyrations today, intra day or in the last one hour of trading, which should be kept in mind by intraday traders. Singapore Nifty futures are currently quoting at 20 points premium should give positive opening for our markets initially. 50DSMA currently placed at 4265.43 should offer support in case of weakness and resistances are at 4315.25(5DSMA); 4327.45(Previous week's closing); 4332.95(July Settlement Price) and 4365 yesterday's high and finally 4398.80 this week's high. The settlement price could be anywhere between 4265 to 4420.
Range for the Day: Nifty might trade in the range of 4250 to 4450 today.
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