21 AUG 2008 STRIKE SEASON!

1:30 p.m.
Hinging tad above 4300 just now, but Sensex is again below 14400. But we reiterate that uptrend only weakens on a close below these levels but terminates only on a close below 4100.
Another indicator is that the bellwether stock RELIANCE weakens only below 2150 on closing basis.

This is not to say that we remain gung-ho after so much of cut all through the week, but technically we haven't' reversed from the uptrend until 4100 is holding - it just weakens!
But August weak positions may square off on a close below 4300, while call options may hold if there is not much of a loss.
Put options be squared off if does not breach 4300 this week.

Good Luck for the day finally!


11:45 A.M.
PLEASE NOTE THAT ALL THE LEVELS MENTIONED IN OUR BLOGS ARE ALWAYS TO BE TREATED AS ON CLOSING BASIS.

8:00 A.M.
We had a sluggish day yesterday due to bank strike etc., yet, it was a positive day though, sluggish.

August F&O positions might be getting jittery. Don't panic! We are hopeful that 4300, the crucial support, would not be breached until expiry and we can rollover to September series if we are in loss making position.

If the new hurdles at 4485 on Nifty(sensex 14980) are surpassed soon, then there would be more vigor in days ahead. But on the downside if 4300 is breached(seems very unlikely) this week then August series should initiate Stop Loss.

Today we have inflation figure day(after market hrs) and weak positions in markets may get squared off later in the day. We wish that inflation has not moved above the previous figure of 12.44. But economists are expecting it to peak around 13. So, its factored in the markets already.

Crude oil seems to have found temporary support and could move maximum to $125 in days ahead. This upmove can keep the market sideways. But it will reverse down from there towards 110 then 100 again.

Wishing you a happy trading day!

We might post another view by 2:30 p.m. later today. Please keep watching!