DOMESTIC MARKET HAVE TAKEN A SHARP DOWN TURN ON SPIKING OIL PRICES. NIFTY ENDED WEAK AT 5367.50 DOWN 79.25 POINTS AND SENSEX ENDED AT 17878.81 DOWN 271.06 POINTS AFTER THE FRESH RISE IN OIL PRICES DUE TO UNO PASSING RESOLUTION TO GEAR UP AGAINST LIBYA & GADDAFI. MOST ANALYST WERE WATCHING THE CRUDE OIL MOVEMENTS CAREFULLY THINKING THAT CRUDE WILL BOUNCE BACK WITH RENEWED ENERGY AND HURT MARKET SENTIMENTS. LOOKING AT THE LOSSES MARKED BY THE INDICES , IT SEEMS THAT ANALYSTS HAD RIGHTLY EXPRESSED CONCERNS OVER THIS ISSUE. CHINA RAISED IT RESERVE RATIO 6TH TIME ON INFLATION WORRIES DUE TO JAPANESE DISASTER.
Safe Harbor
Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.Nothing in this article is, or should be construed as, investment advice.
Disclaimer:
This is neither an offer nor a solicitation to purchase or sell securities. The information and views contained on this blog are believed to be reliable, but no responsibility (or liability) is accepted for errors of fact or opinion. Writers and contributors may be trading in, or have positions in the securities mentioned in their articles. Neither I (Vikas Srivastava) nor any of the contributors accepts any liability arising out of use of the above information/article. Reproduction in whole or in part without written permission is prohibited.
IF THE OIL PRICES CONTINUE TO TAKE HIGH JUMP THEN THE MARKET WILL TRADE IN A TIGHT RANGE OF 5400-5450 ON THE HIGHER SIDE AND 5100 ON THE LOWER SIDE. IF 5340 IS BROKEN THEN NIFTY WILL WITNESS A SHARP KNOCK TO FORM NEW LOW BY 50-100 POINTS TO AROUND 5100. RELIANCE WHICH FELL SHARPLY ON THE NEWS OF LOW OUTPUT FORECAST. ANALYST NOW VALUE RELIANCE TO TOUCH 950-900 BY COMING MONTHS. HENCE MARKET SHALL BE IN A TIGHT RANGE OF 5100-5450 FOR THIS WEEK, UNTIL AND UNLESS SOME THING IMPROVING OR DETERIORATING HAPPENS ON THE CRUDE OIL FRONT, OR JAPAN CRISIS FRONT OR DOMESTICALLY INFLATION AND POLITICAL ISSUES. OVERALL THE RANGE OF 5100-5450 SHALL BE MAINTAINED TILL Q4 RESULTS START DROPPING IN. RESULTS MAY GIVE THE FRESH DIRECTION AND STRENGTH TO THE MARKET, WHICH MAY EITHER RISE TO 5800 OR DROP BELOW 5000.
WHAT ONE SHOULD DO? AT THIS POINT THERE IS NOT WISE TO CATCH THE FALLING KNIFE. WAIT TILL THE NIFTY COMES TO THE SUPPORT LEVEL OF 5200-5170, THEN START BUYING KEEPING THE STOP LOSS OF 4950-25 AND WAIT FOR THE UP MOVE AFTER THE Q4 NUMBERS.
AGGRESSIVE TRADERS SHOULD BUY STRADDLE AND SPREADS:
STRATEGY 1: BUY 5300 CE AND 5300 PE BOTH AND WAIT FOR BOTH SIDE MOVES TO GIVE PROFITS.
STRATEGY 2: BUY 5300 PE AND SELL 5100 PE AND BOOK PROFIT & EXIT AT 5100.
STRATEGY 3: SELL 5500 CE AND 5200 PE AND WAIT FOR EXPIRY KEEPING THE STOP LOSS AT 5100 FOR PUTS AND 5500 FOR CALLS
Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.Nothing in this article is, or should be construed as, investment advice.
Disclaimer:
This is neither an offer nor a solicitation to purchase or sell securities. The information and views contained on this blog are believed to be reliable, but no responsibility (or liability) is accepted for errors of fact or opinion. Writers and contributors may be trading in, or have positions in the securities mentioned in their articles. Neither I (Vikas Srivastava) nor any of the contributors accepts any liability arising out of use of the above information/article. Reproduction in whole or in part without written permission is prohibited.
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