30/10/09 - Market cues & calls

Woooooooo what an expiry? Expiry days are always easy to mint money which proved again, 4800 PE gave 800% return is just 30 mins. Expiry close beats every analyst view including me where all spoke with option data where markets fooled everyone, that's market and we should not chase it. These are important lessons for beginners in markets. If Market is king then Stop loss is queen always to tackle him. So Nifty expired @ 4750,where again operator showed their strength. what will be the scene today on Indian markets? Recovery or tumble? lets see. Big Boy Reliance have come with bad numbers which will not cheer the markets. US markets closed nearly 2% after 4 days slide with strong GDP numbers, will it continue yes. DOW closing above 10000 for the week will cross 10250 - 10500 this time.

Nifty view ::

Nifty Nov future ended up with 29 point premium. From recent swing high to low Nifty reached its 50% retracement @ 4767 yesterday and 38.2 pegged @ 4669 so thats area whr one can try to add their positions or Stop for longs on closing basis. Technically we are nearing the bottom of this fall, where a retracement is expected. Opening will be induced by Reliance with its bad result rather than US & Asian markets. Until 4833 crosses and holds one can short every rise for 4669 target. Shorts who are in profits can try to exit @ every dip as technically its Oversold market.Oversold does not mean will see lows.4731 is the support level breaching that will give 4669/4619/4575. The way FII's selling seems USD gonna bottom out.Gold will dip until mid of december,then we can expect sharp rise in it where it can reach 1250 - 1300 $ soon. So try to pick gold below $1000. And for our markets pharma,telecom sector will do better in this run. Pick Bharti airtel with an married put to tackle risk.Safe traders can skip overnight weekend position as we have holiday on Monday.

Levels ::

Nifty fut Supp @ 4738 :: Res @ 4820

Bearish > 4787 < Bullish

Stocks to watch ::

PNB Gilts
DCW
Skumars
Zicom

Happy trading !!!!