Weakening of US Dollar for the last two weeks, coupled with market positive news like, RIL Bonus Offer, Infy's outstanding performance and upping the guidance, finally confirmation of economic recovery by strong IIP numbers, lead to a strong bull charge on 12th and the same continued yesterday, resulting in both Nifty and Sensex making new 52 week highs and also closing around the same levels. US markets also are on strong rally Dow has crossed 10000 afer an year and closed above it, inspite of raising crude prices and other troubles of economy not waning out. Japan has left the overnight rates unchanged, and RBI and Governemnt of India are not much worried about appreciation of rupee till it breaches Rs.45 level, as being observed, is allowing FII inflows in markets at their peak in the recent times.
All the cautious words by various fundamental analysts, technical analysts trying to fix the top and predict the reversal of trend or a correction at least 10 to 20% which would be healthy for the markets in the long run, are making fence sitters restless, as the indices and stocks are posting gains, and they are afraid to enter at these levels. In my view markets have their own mind and do what ever they wish to do and not listen to all the talk what is happening! Today is 'Dhan Therus' a day which is treated auspicious by most of the indians, who will buy and buy only, thus, we can expect buying to continue today also in our markets. Diwali muhurat trading is there on 17.10.2009 (Saturday) from 06.15 p.m. to 07.25p.m. where all world markets will be having holiday, might invite some profit booking as investors feel it is good to take some profits home on the 'Lakshmi Puja Day'.
NIfty might face resistance at 5154 - 5180 - 5200 levels today. 17489 on Sensex is crucial trend dicider, if Sensex is able to cross it with volumes and close above it this week, certainly indices will gradually post further gains to challenge the all time highs too!
One can buy 5100 Straddle of November at current prices, and hold till November Expiry for good returns.
Happy Dhan therus!
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