Markets opened gap down due to the global weakness yesterday, but a flurry of short covering coupled with positive sentiment due to the NSG deal pulled the markets in to the positive territory momentarily before closing flat. Lehman brothers couldn't shore up enough capital yesterday in a failed deal with Korean Development Bank; Lehman's shares slumped a whopping 45% in yesterday's trade on NYSE. This should dent some of the positive developments in India and put the focus light back on the credit crunch.
SGX Nifty Futures are currently trading at 38 points discount, which would indicate a weak opening for our markets too. Any gap down opening should find the first support near the 5 DSMA (4427) and the upward move should encounter a stiff resistance near the 100 DSMA (4553).
Range for the day: 4360 to 4553
Strategy for the day: Buy 4300 CE on weakness for Intraday trading
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