This week Indian markets were volatile within a very small range and dropped 0.6 %, the volumes were low and there was no conviction to trade on either side. The IIP data came in below expectations at 4.4 % much lower that the 5.5 % consensus. The manufacturing growth seems to be slowing at a faster pace, this is due to the run away inflation and the higher interest rates. The liqudity sitiation too seems to be very tight. The global cues too was not comfortable, most global markets too closed lower.
This week the markets will look up to the advance tax nos. and the RBI policy statement to catch some triggers. The QE 2 in the US is coming to a close and the free money movement may stop. The Republicans want to put pressure on the Democrats to cut down of fiscal deficit and increase taxes. Germany too is putting the breaks on bailing out debt nations like Greece, Portugal & Spain. We are bound to see some pressure on global markets going forward.
The derivatives position for the week stands at Rs 127033 Crs in OI; the PCR is at 1.22 the option IVs for Calls at 17 % & Puts at 168%. The Nifty Future is trading at flat to spot. There seems to be a – Ve sentiment in the market. The Bias is towards a correction continuing this week too.
Nifty on June 10th : 5485
Nifty Strategy : Sell Nifty on Upmove to 5540 for a Target of 5420
Happy Trading
This week the markets will look up to the advance tax nos. and the RBI policy statement to catch some triggers. The QE 2 in the US is coming to a close and the free money movement may stop. The Republicans want to put pressure on the Democrats to cut down of fiscal deficit and increase taxes. Germany too is putting the breaks on bailing out debt nations like Greece, Portugal & Spain. We are bound to see some pressure on global markets going forward.
The derivatives position for the week stands at Rs 127033 Crs in OI; the PCR is at 1.22 the option IVs for Calls at 17 % & Puts at 168%. The Nifty Future is trading at flat to spot. There seems to be a – Ve sentiment in the market. The Bias is towards a correction continuing this week too.
Nifty on June 10th : 5485
Nifty Strategy : Sell Nifty on Upmove to 5540 for a Target of 5420
Happy Trading