TUESDAY 09AUG 2008

There doesn't seem to be any dearth of liquidity. This could be due to the increasing market-economy awareness around the world including the emerging ones. Everybody wants to have a taste of it! But the question now is of valuations! Nothing much could happen unless FII's and DII's do not jump the bandwagon.

Technically, we bounced from the crucial retraction area yesterday. It is yet another positive sign. But the weakness of Asian markets besides apprehensions about western markets may keep us subdued. Today's OPEC meeting will also give some direction to Crude prices. Our main trigger this week would be inflation figures on Thursday. Until then, it would be worth taking risk of keep holding our longs as per our weekly index outlook.

We have already utilised our 40% of buying capacity for this month series. Keep holding that as per the levels given in Weekly Index Outlook.

Now the immediate support levels are:-
4445
4380

Those who were on the sidelines until now, can buy at these above mentioned support levels with stop loss of 4200 and/or 4100 levels as per the Weekly Index Outlook. Others may allocate 10% more at these levels.
Volatility could be high this week. So, call options of Nifty strike 4600 and 4500 could be less risky. There could emerge some opportunities as per our weekly stock recommendations. Please have a look at that also.

Wishing you a happy trading day.