As expected, our Indices opened mildly weak yesterday and the level of 4427 was held during the morning session. However, the Indices broke down in the afternoon session due to heavy selling by FIIs and closed at the psychological support of 4400. Today, our markets will open weak as the Asian markets are currently trading weak. 4363 being August'08 close should be held for today, in which case, one can go long on Nifty futures with an appropriate stop loss of 25 points.
Crude has weakened to $102 whilst Indian crude basket is below the $100 mark. Every $1 fall in the crude price helps the under-recoveries of Indian Oil firms by Rs.3000 Crores. But, Rupee weakening to Rs.45/$ and further signs of weakening to Rs.46/$ offsets the gains for the Oil firms mentioned above. Advance tax payments on 15th Sep'08 will continue to put pressure on the markets and the next directional trend will be clear once the advance tax payment numbers are out for the ensuing quarter.
SGX Nifty is currently trading at a discount of 90 points, which shows that our opening will also be weak. However, 4300 to 4320 is a strong support for Nifty where one can expect signs of reversal.
Range for the day: 4200 to 4420.
Strategy for the day: Go long on Sept Nifty futures with a 25 point stop loss at the opening.
2 comments:
Is Any pullback expected now as markets looks oversold now specially due to reliance ?
Mr Rao ,
where are you . No postings since thrusday .
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