Profit booking has set in at the opening of trading itself and continued till the end of the session after a spectacular rally on 02.09.2008, since the issue of political turmoil once again cropping up due to Indo-Nuke deal stance of our government is questioned by opposition parties severely once again. Crude bounced from 105$ levels and the inflation has cooled down to 12.34% as against 12.40% previous week, might not influence the markets today much on the upside. The jobless claims increasing as per US unemployment data, spooked the markets overnight as concerns of recession and slowing down surfaced. European markets too posted losses on the ECB statment that slowing of economy spreading to its region. Asian markets are already trading weak and Singapore Nifty Futures are currently quoting at a discount of 120 points which indicate gap down opening for our markets. 50DSMA currently placed at 4265 should offer good buying opportunity today at the opening, for intraday traders. It is to be seen what will be the closing today, if Nifty continuously trades below 4360 today, expect weakness continue next week, as corporates will be pressing for sales for meeting advance tax payments by 15.09.2008. VIX has closed at 31.23.
Range for the Day: Nifty might move in the range of 4250 to 4400 today.
Strategy for the Day: 1.Buy 4200 calls on weakness for intraday trading.
2.Buy Nifty futures at the opening with a stop loss of 25 points below purchase price for intraday swing.
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