Out look for Thursday

"Both indices opened firm and touched new highs, however, profit booking and caution at higher levels made markets volatile. Both indices closed positive for the day. Sensex is approaching crucial resistance at 14950 where profit sales and caution can be expected as strengthening of rupee is hurting exporters and software sector in particular, whose major earnings are in dollar terms. Nifty futures are at nominal discount of 4 points does not give any strong upmove, as shorts are out of the system. Any negative trigger can make markets to slide easily, so caution is to be the key point.

 

Nifty is trying to manage close around 4355, and volatility can be expected till the Infosys results are out on 11th, Depending on guidance and outlook for the sector markets will take major trend in either direction from there on. Intra day traders can buy straddle of 4350 strike price (buy 4350 call and put option) in the current series and make quick returns capturing the volatility.

 

The day's range for Nifty shall be 4280 (Support) and 4400 (Resistance); Sensex shall be 14500 (Support) and 14950 (Resistance)

"Bull run continues"

"Sensex and Nifty opened firm yesterday, traded positive throughout the day and both made new highs; Overseas markets are stable and US markets are closed today, for Independence day. Overall sentiment has improved with caution, Since the rally is running for 4 days, correction is expected anytime, which shall be an opportunity to go long on the Nifty. Nifty shall be volatile as it approaches 4365 - 4375 range, and running correction can be there, which should be used to go long on 4300 calls for intraday / intra week gains. On noticing weakness around 4380 - 4400 levels on nifty, one can hedge the portfolio by going long on 4400 puts for intraday / intra week gains.

 

Indices can have real strong bull run, once ITC, HLL and Technology majors start participating in the rally with vengence. Secular bull rally can be expected once these stocks, which are laggards start participating. Long term investors can start accumulating these stocks on any weakness in the market, whenever correction happens.

 

 

The day's range for Nifty shall be 4280 (Support) and 4400 (Resistance); Sensex shall be 14500 (Support) and 14950 (Resistance)

 

"Sensex creates History"

"Sensex opened with a gap yesterday and traded firm above 14700 for quite some time and touched 14745.97 creating a history, as it cleared the previous high made on 09.02.2007. Though  Nifty is trading in new territory above 4245.30 for long period, Sensex could clear yesterday, clearly giving bullish out look as predicted in our report "Outlook for July' 2007" posted earlier, before opening of the markets. Nifty futures discount reduced from 22 points to 11 points as at the close of trading is positive for the markets today.

 

US markets closed strong over night and asian peers are trading firm, will give firm opening for our markets and short squeeze will help indices to post gains today. Sensex closing above earlier high of 14723.88 during this week will give confidence for fence sitters to jump in to buying mode, which should take sensex to the upper end of the range for the week...14950. Volatility will be high as we are trading at all time highs, and it is now "buy on dips markets till the results season unfold on 11th with Infosys Q1 numbers and guidance. One may watch trading opportunities buy going long 4300 straddle ( Buying 4300 call and put options for making quick returns) in June series.

 

The day's range for Nifty shall be 4280 (Support) and 4365 (Resistance); Sensex shall be 14500 (Support) and 14800 (Resistance)

Out Look for July' 2007

"June month witnessed volatile movement in Nifty, while Nifty made a new high on 04.06.2007 at 4362.95, Sensex could not clear the previous high of 14723.88 made on 09.02.2007. Both the indices have closed positive, month on month and the weekly closing also was positive, thus giving a bullish outlook for today.

 

This is very important month, since earnings season would kick start with Infosys results to be announced on 11th along with guidance for the quarter and year shall be watched very carefully by all players. The sector is in catch 22 situation, with strengthening of rupee visa vis US $; and possibility for further strengthening since major flows are expected during this week and month, will directly impact the bottom line of Indian software sector which holds key for the direction of the markets. It is broadly felt that though the large players have hedged most part of their receipts, still margin pressure shall continue due to increase in earnings too, due to competetion in retaining talent. Technology stocks, have under performed the broader market till now and are resting on strong support levels, can give the phillip to the market to move in to new bull orbit, if there are positive signals and noices, contrary to the expectation, as heavy short positions are created in sector.

 

Nifty might trade in a broad range of 4100 to 4500 during the month, with continuation of volatility. Today the markets might open positive, an attempt may be there to clear the Sensex previous top during this week; however, sustaining above 14500 on any intra day weakness shall certainly will be a strength to the markets, and markets might witness 14950 before the result season unfolds.

 

The day's range for Nifty shall be 4280 (Support) and 4365 (Resistance); Sensex shall be 14500 (Support) and 14800 (Resistance