THURSDAY 25SEP 2008

The U.S. administration is asking its countrymen to buy the worthless assets.
Their financial institutions doled out money to Paul, Peter and Mary; and lo and behold, to even tom dick and harry. With this money, all these worthies splurged and purchased assets like houses that were beyond their worth. So these worthies faltered in paying back this loan and evacuated these houses which are lying vacant as wasted money.
The balance sheets of these financial institutions are swelling with non recovered amount and that is what is being proposed to be salvaged with public money -a whopping $700 billion.
The argument is still on between FED and the Senators. Interestingly, the administration has no clear road map about how and how long these toxic assets would take to reach their break even price! Yet, the people have no choice but to sanction this demand.

Today is our F&O expiry and the inflation day.
Every rise in the market is being encountered by selling pressure.
A long straddle (buying call and put of the same strike) in NIFTY October series, strike 4200 or 4100, whichever is nearest, is suggested. Sell the call around 4500 and sell the put around 3900. Or hold it till expiry as markets have to trend in some direction by then.