This week the Indian markets will look up to the election results in 5 states and the core look will be for the stability at the center. The exit polls seem to suggest the biggest state UP will go the SP way and may look to the congress to support. If this happens will be good for the center as the government can look at their support to pass some much awaited bills to kick start the economy. The RBI's policy and Budget are the next forthcoming events and will be closely watched.
The derivatives position for the week stands at Rs 118740 Crs in OI; the PCR is at 1.22 the option IVs for Calls at 24 % & Puts at 27 %. The Nifty Future is trading at 20 point Premium to spot. The Technical & Derivative positions seem to suggest a Volatile movement due to the election event.
Nifty on 2nd Mar Feb 2012: 5360
Nifty trading ideas for the week: Expect High Volatility, Buy around 5200 only or Sell around 5540 levels..
Stock ideas for the Week: Sell Sterlite around 126 levels Target: Rs 110 SL : 131