Happy Diwali! Hope that this diwali onwards markets shall stabilize and give some relief albeit volatility and uncertainity on global front!

At the outset, let me wish all readers a Happy and Prosperous Diwali and New Year for most parts of India, especially North India! I Stopped writing since 21st as the prediction of deep bear market is confirmed in October'2008 once 3000 level on Nifty and 9900 on Sensex also were broken effortlessly, due to panic unwinding of long positions a head of derivatives settlement on 29.10.2008 for this series, and bears who were licking their wounds in the last 4 years bull run were on spree and making merry of the situation. Now that the hardcore optimist and the last strong bull also might have thrown his towel and started looking at the stars and consulting astrologers for respite, and is confused, I feel markets are near the long term bottom. The lows made yesterday i.e., on 27.10.2008 on Nifty (2252.75) & Sensex (7697.39) are very close to the previous 8 year bear cycle tops, which should hold from now on. Though the markets shall witness strong relief rallies as they entered oversold positions, return of bullish ness can be just forgotten for few months. Only professional traders with strict discipline and technical stop losses can benefit from the bearishness cum sideways consolidation which will continue for at least 12 months to 24 months before the highs made in this year are challenged.


VIX has touched an all time high of 90.02 yesterday with markets bouncing from lows of yesterday, indicates that we are near medium to long term bottom. Though other markets work full session, it is a holiday for markets and banks in India. A Special session of Muhurath Trading will be held between 06.15 p.m. to 07.15 p.m. which will certainly see upside initially, and some selling by traders who went long yesterday at bottom, as it is the sentiment which people believe that some gains are to be taken home today which will bring prosperity for the entire year Samvat 2065' Tomorrow being the Derivatives settlement day, we can expect positive closing today and tomorrow.

The range for Nifty: Today Nifty might trade in a narro band of 2400 to 2600 due to short session.

Strategy for the Day: Go long on 2400 calls and book quick profits today or tomorrow, as Nifty might settle tomorrow above 2500!
vrk