AFTER THREE DAYS OF WEAKNESS MARKETS WITNESSED A BOUNCE BACK AFTER A MUCH VOLATILITY AND WEAKNESS IN THE MORNING SESSION. NIFTY ENDED ABOVE 5000 MARK AT 5012.55, UP BY 71.60 POINTS. SENSEX CLOSED AT 16709.60, UP BY 242.16 POINTS. MARKET BREADTH WAS POSITIVE. BOTH MID-CAP AND SMALL-CAP INDEX WERE UP BY A LITTLE MORE THAN QUARTER PERCENT.
INFLATION SURGED TO 9.78% IN AUGUST 2011 AGAINST 9.22% IN JULY 2011, ON THE BACK OF SOARING PRICES OF FOOD AND MANUFACTURING PRODUCTS.
NOW THERE ARE TWO MAIN EVENTS AND CUES DOMESTICALLY WHICH HAS TO GUIDE THE FUTURE COURSE OF MARKET MOVEMENT. CORPORATE ADVANCE TAX NUMBERS FROM TODAY AND RBI POLICY TOMORROW SHALL BE THE MAIN FOCUS. GLOBALLY DEVELOPMENTS IN GREECE ECONOMY SHALL ALSO BE SEEN.
THE BROAD RANGE OF THE MARKET SHALL BE 4900-5100, BREAK ON EITHER SIDE SHALL BRING FRESH 100-125 POINTS MOVE. MARKET SHALL BE RANGE BOUND BETWEEN THE ABOVE LIMITS AHEAD OF RBI MEET.
FOR LAST FEW DAYS NIFTY HAS WITNESSED HUGE VOLATILITY, WHICH IS EXPECTED TO CONTINUE FOR COUPLE OF DAYS. NOW NIFTY IS EXPECTED TO GET STRONG SUPPORT AT 4900. IF NIFTY BREACHES 4900, THE SHORT TERM TREND WOULD BECOME NEGATIVE AND NIFTY MAY GO TO 4800 IN THE EXTREME SHORT TERM. HOWEVER, ON THE HIGHER SIDE A BREACH OF 5050 SHALL TAKE NIFTY TO 5170 AND 5230. A STRICT STOP-LOSS OF 4900 IS MUST FOR ALL LONG POSITIONS.
FOR TODAY: NIFTY HAS SUPPORT AT 4970 AND RESISTANCE AT 5055. IF 4970 IS BROKEN THEN 4940 & 4900 SHALL BE THE TARGET. HOWEVER IF NIFTY IS ABLE TO SUSTAIN ABOVE 5055, THEN THE LEVEL OF 5080-5120 SHALL BE THE NEXT TARGET.
STRATEGY FOR THE DAY:THERE ARE TWO STRATEGIES FOR TODAY & TOMORROW
STRATEGY 1: BUY CE5000 & CE5100 IF NIFTY MOVES ABOVE 5050 FOR THE TARGET OF 5170-5230.
BUY PE5000 & CE4900 IF NIFTY MOVES BELOW 4970 FOR THE TARGET OF 4940-4900.
STRATEGY 2: BUY 2 LOTS OF PE5000 & 1 LOT OF CE5000 FOR THE TARGET OF EITHER 5400 OR 4600. THIS STRATEGY IS BEST FOR 16TH SEPTEMBER EVENT OF RBI CREDIT POLICY MEET. ONE CAN BUY THE 5000 STRADDLE(i.e., BUYING BOTH CE & PE 5000 SIMULTANEOUSLY). THIS IS BEST WHEN THE OUTCOME OF EVENT COULD EQUALLY EFFECT THE MOVE ON THE EITHER SIDE. BUYING OF 2 LOTS OF PUTS( PE5000) SHALL BE THE BEST AS THE CHANCES OF DOWN SIDE RISK ARE MORE THAN THE UP MOVE.
Safe Harbor Statement:
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.
INFLATION SURGED TO 9.78% IN AUGUST 2011 AGAINST 9.22% IN JULY 2011, ON THE BACK OF SOARING PRICES OF FOOD AND MANUFACTURING PRODUCTS.
NOW THERE ARE TWO MAIN EVENTS AND CUES DOMESTICALLY WHICH HAS TO GUIDE THE FUTURE COURSE OF MARKET MOVEMENT. CORPORATE ADVANCE TAX NUMBERS FROM TODAY AND RBI POLICY TOMORROW SHALL BE THE MAIN FOCUS. GLOBALLY DEVELOPMENTS IN GREECE ECONOMY SHALL ALSO BE SEEN.
THE BROAD RANGE OF THE MARKET SHALL BE 4900-5100, BREAK ON EITHER SIDE SHALL BRING FRESH 100-125 POINTS MOVE. MARKET SHALL BE RANGE BOUND BETWEEN THE ABOVE LIMITS AHEAD OF RBI MEET.
FOR LAST FEW DAYS NIFTY HAS WITNESSED HUGE VOLATILITY, WHICH IS EXPECTED TO CONTINUE FOR COUPLE OF DAYS. NOW NIFTY IS EXPECTED TO GET STRONG SUPPORT AT 4900. IF NIFTY BREACHES 4900, THE SHORT TERM TREND WOULD BECOME NEGATIVE AND NIFTY MAY GO TO 4800 IN THE EXTREME SHORT TERM. HOWEVER, ON THE HIGHER SIDE A BREACH OF 5050 SHALL TAKE NIFTY TO 5170 AND 5230. A STRICT STOP-LOSS OF 4900 IS MUST FOR ALL LONG POSITIONS.
FOR TODAY: NIFTY HAS SUPPORT AT 4970 AND RESISTANCE AT 5055. IF 4970 IS BROKEN THEN 4940 & 4900 SHALL BE THE TARGET. HOWEVER IF NIFTY IS ABLE TO SUSTAIN ABOVE 5055, THEN THE LEVEL OF 5080-5120 SHALL BE THE NEXT TARGET.
STRATEGY FOR THE DAY:THERE ARE TWO STRATEGIES FOR TODAY & TOMORROW
STRATEGY 1: BUY CE5000 & CE5100 IF NIFTY MOVES ABOVE 5050 FOR THE TARGET OF 5170-5230.
BUY PE5000 & CE4900 IF NIFTY MOVES BELOW 4970 FOR THE TARGET OF 4940-4900.
STRATEGY 2: BUY 2 LOTS OF PE5000 & 1 LOT OF CE5000 FOR THE TARGET OF EITHER 5400 OR 4600. THIS STRATEGY IS BEST FOR 16TH SEPTEMBER EVENT OF RBI CREDIT POLICY MEET. ONE CAN BUY THE 5000 STRADDLE(i.e., BUYING BOTH CE & PE 5000 SIMULTANEOUSLY). THIS IS BEST WHEN THE OUTCOME OF EVENT COULD EQUALLY EFFECT THE MOVE ON THE EITHER SIDE. BUYING OF 2 LOTS OF PUTS( PE5000) SHALL BE THE BEST AS THE CHANCES OF DOWN SIDE RISK ARE MORE THAN THE UP MOVE.
Safe Harbor Statement:
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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