"Our markets opened positive taking cues from overseas markets and sensex touched new high (17982.59), and within no time selling commenced, as traders exited from long positions built in the past 15 days, due to the political crisis looming at centre, on account of tough talk by both left parties and congress party which is heading UPA lead coalition government at centre. IAEA chief is visiting India today, and shall meet PM on 11th, is the central point of disagreement between both quarters, as it would tantamount to "operationalising the Indo-Nuke deal", which is the observation by left parties. The much awaited correction has come suddenly and swiftly, as it would be the behaviour of long term bull markets, after having a spectacular rally since 18th sept' 2007. The long term trend is very much intact, and indices have found support at September monthly closings (Sensex 17291.10 & Nifty 5021.35) and closed well above these levels. Nifty futures closed at 7 points discount does not indicate much bearishness.
Our markets might trade in a range during this week, and take a cue from Q2 results to be announced by Infosys on 11th. Momentum stocks and small, medium cap stocks are big loosers due to huge unwinding. There may be a bounce today, since markets are down for 3rd day in a row, however, it is not the time to make big purchases. It will be a trading market for at least two weeks, by which time the results are digested by the market and how the Congress - Left imbroglio is sorted out, shall give the direction to the markets.
Strategy for the day: Buy 5000 calls on weakness and 5200 puts on rallies for quick returns in day trading.
Nifty range for the day: 5000 to 5200 & for Sensex shall be 17100 to 17777
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