TUESDAY 07 OCT 2008

Long term Investors in India should start nibbling into fundamentally strong companies on every fall now; more so if panic selling occurs. The index could halt above 3450(11200) any time soon. A fall below this level would be unrealistic and untimely at this juncture, even if it has to go down up to 3000(10000) in medium to long term.

Short term traders can buy Nifty Call options for a relief rally any time this month. Do not go for strike options beyond 4000. There is sufficient liquidity in December option series also, starting from strike 3500 and above. Otherwise, look for October series. Another strategy would be to go long in Futures and hedge that by buying a put option of nearby strike.

Note: Please always remember that this is not a solicitation for trading in the markets necessarily. Use your own discretion!