Market Strategy

The Strategist

Strategies for the day

Date                Company   View                   Strategies          Action                                  Risk        Reward
28-10-2009    NIFTY      BEARISH BEAR PUT SPREAD BUY 4800 PE @ 125 4867 3350      6650
OCT. EXPIRY
SELL 4600 PE @ 58
Graphic Snapshot
Trading Laws:
• A Trader not observing STOP LOSS cannot survive for long.
• Never re-schedule your stop loss, square up first and then take a fresh view.
• Book small losses by buying / selling near support / resistance, and look for big gains, this will maximize the gains.

Daily Market Tips

First Call



MARUTI SUZUKI
Execution Price Range                       Stop Loss              Target
Sell Between Rs 1475 to 1485             1496                   1448



STERLITE INDS
Execution Price Range                     Stop Loss               Target
Sell Between Rs 775 to 785               792                      756


LIC HOUSING FINANCE
Execution Price Range                     Stop Loss              Target
Sell Between Rs 805 to 815               821                     788

USD/INR DAILY

Dollar

The much awaited monetary policy was declared by the RBI yesterday which hinted that the central bank will look forward for raising the rates in coming days. RBI governor D. Subbarao also stated that monetary policy’s first priority would be to contain the inflationary expectation which is expected to touch 6.5% by March 2010.Policy Rates like REPO, Reverse REPO as well as CRR were left unchanged but SLR(statutory Liquidity Ratio) which is minimum required investment by banks in government securities was raised from 24% to 25% of deposits. Also some steps towards rolling back of easy money policy was taken when it terminated credit refinance limits extended to banks against loan give to exporters and mutual fund companies.
The net effect of this decision was weakening of the rupee against the Dollar with the pair breaching the 47 mark and closing at the same levels while equity markets tumbled by 124 points to close the day at 4846 levels. Bond yields fell on expectation of higher inflows from banks with 10 year benchmark yield quoting at 7.32% from 7.45% previously. We continue to be bullish on the pair with USDINR expected to touch 47.25 levels . 



                              Pivot             Support1    Support 2   Resistance 1      Resistance 2
Spot                       46.90           46.78         46.64             47.04                   47.15
Nov. Future          46.99           46.89          46.77            47.11                   47.21

Market Summary

Last trading day: Tuesday, 27 October

 It was a disappointing day of trade yesterday as the market closed at the low point of the day. Market saw the biggest point fall on the Sensex and Nifty since August 17 post the RBI's credit policy blow in the afternoon. The policy hit real estate stocks hard that dragged the market lower and Nifty breached the crucial 4900 level. Market also recorded the third highest turnover of Rs 1.46 lakh crore on account of F&O expiry and resultant volatility this week. Sensex shut shop at 16353, down 387 points and Nifty at 4846, down 124 points from the previous close. CNX Midcap index was down 3.68% and BSE Smallcap index was down 4.42%. The market breadth was in the negative with advances at 113 against declines of 1174 on the NSE. Top Nifty gainers included Wipro, Tata Motors and Sun Pharmawhile losers were Reliance Capital, Hindalco and Unitech.

Your Ad Here