The Stocksweekly is still relevant and trade acoording to the levels and outlook given therein.

It seems that its a different ball game for China and India now. All the world markets are rallying in an effort to break through their upper limits but China and India are still far below their upper breakout limits. This is due to the reason that Foreign Institutional Investors (FII's) are pulling out from these countries for reasons best known to them. But growth story of both these countries remain far better than all others. So, it would have to be seen when these FIIs make a comeback.

1. DOW and FTSE are a little below their upper ceiling of short term. If these two close above these upper limits today then it would be a very positive sign in the short term and other world markets would also take a cue from that. But these markets being in short term uptrend for the last couple of days, may reverse anytime soon and fail to break through the ceiling to make new lows. This could cause another bout of selling around the world.

2. JAPAN N225 and HANGSENG have closed above their upper ceiling. Therefore now, even if they reverse down from these levels, it is unlikely that these two would make another new low. A medium term trough at their recent lows seems to be in place for them now.

3. CHINA SHANGHAI and INDIA BSE SENSEX could remain subdued in the near term and there is a possibility of their making new lows in the days to come. Therefore, the traders could remain short in these markets but Investors with long term horizon should start cherry picking with every panic selling in the market. This view would be mitigated only if they breakout of their upper limits today, which seems unlikely. But do keep a watch!

To sum it up, our Stocksweekly is still relevant and trade according to the levels and outlook given there.
We would initiate put option with every rise in the market and square off the call option on every break even point. Call option of Long straddle of strike 2400 in NIFTY is almost at break even point.
The adventurous ones could start accumulating the Year 2011 June Call options of strikes above 3500 and up to 5000. Only savvy traders may do so.