Last week the Indian markets moved up by 0.8 %, was on sideways move through the week within the 5320 - 5420 range. The IIP data came in lower at 1.8 % in December way below the November nos. The global issues were focus last week. The Greece issue continues to be in the forefront. The US markets also fell on Friday due to the Greece issue and increasing trade deficit. The Crude Oil prices moved up by 5.7 % last week on fears of an Iran blocade crisis. The uncertainty in the global markets added to it the money printing machine working overtime in EU & US is driving inflation in all the growth markets. The Federal banks in emerging markets are working hard to manage inflation and growth without letting interest rates run higher.
This week the Indian markets have the results of SBI, Tata Motors, and Coal India on the tap, also have the inflation data for last month. Don't expect any major shift though. The global markets will be closely watching the Greece vote on Sunday. The workers in Greece went on a 48 hour strike against the austerity measures undertaken by the government.
The derivatives position for the week stands at Rs 139720 Crs in OI; the PCR is at 1.45 the option IVs for Calls at 19 % & Puts at 23 %. The Nifty Future is trading at 7 point Premium to spot. The Technical & Derivative positions seem to suggest a sideways move.
Nifty on 9th Feb 2012: 5381
Nifty trading ideas for the week: Look for the 5320 - 5420. A break in either direction will give a 150 point swing in the direction of the break.
Stock ideas for the Week: Sell Telco around Rs 260 for a Target of Rs 230. Stop Loss at Rs 262.