With the Nifty continuing to attempt a jump over the 5550 mark, market participants - large and small - are getting uncomfortable. Besides the swings associated with the F&O expiry and the usual global cues, there appears no strong catalyst in sight to either break or make the market. After a flat finish we are staring at slightly soft opening today.
Asian markets are mostly down following the overnight decline in US shares. Wall Street was hurt by lingering worries about the health of the US economy. All eyes are on today’s housing data, which is expected to be rather grim. Investors will also look forward to Friday’s revised US GDP data. Across the Atlantic, markets in Europe closed up though Germany’s benchmark ended nearly unchanged.
India's non-Index counters have been buzzing lately. That trend is likely to continue but exercise caution on these counters. Large caps could see some action based on the news-flow. While the overall bias for the Indian market remains positive, don’t expect great things in the near term. Have some patience and you are bound to reap a rich harvest in the coming months. Thursday’s F&O expiry could throw some more light on near-term direction.
Global markets are witnessing some amount of volatility owing to concerns about slowing growth in the US and elsewhere. But Indian markets are more or less stable. Volatility has been low and trading volume has picked up. Fund flows remain encouraging although local institutions continue to cautious. Some resistance is expected before the Nifty hits 5600. Support is likely to kick in at around 5400 if the Nifty slips below 5500. The Nifty might go on to hit 5700 in the near term but not without hiccups.
FIIs were net buyers of Rs3.18bn in the cash segment on Monday (provisionally), according to the NSE web site. Local funds were net sellers of Rs. 1.59bn. In the F&O segment, they were net buyers at Rs. 17.02bn.
FOR TODAY:
I) MARKET OUTLOOK BY ANGEL BROKING::
II) TECHNICAL REPORT BY ANGEL BROKING::
III) DERIVATIVE STRATEGY BY MICROSEC::
DISCLAIMER: I have short position in NIFTY and bought 5500PE for August expiry. I may exit at any moment.
