Markets and News
Weekend is here and a sad news to end the week. One of the greatest Prime Ministers that India has seen, a poet, orator, journalist and a philosopher, former Prime Minister Atal Bihari Vajpayee passed away at 5.05PM yesterday at the age of 93. Homage to the great son of India and a loss that cannot be filled in, in the near future. Coming to markets, there was a huge green yesterday as Turkish Lira started rebounding and gained 25% of its lost value. Dow Jones has gained more than 300 points and all the Asian markets are in green celebrating the re-bound of the Turkish Lira.
Coming to the domestics, Rupee has hit another all-time high today with Rupee touching 70.50 level before recovering a bit. We need to see if Rupee will reversing the trend or not needs to be seen. Today is a holiday for the money markets on account of Parsi New year so the 70.15 level at which rupee closed will be final value till next week. On the Brent Crude front, its right now at 71.1 dollars and that continues to be the good news. There might be some impact on the oil, paint and tyre stocks as the Brent is now firmly settling around 70 dollars now.
On the derivatives front, there has been selling that is happening in the Futures market but it is offset by buying that is happening at the lower levels. In options market the Nifty put call ratio corrected to 1.60 from 1.70 seen at the beginning of the day yesterday. Positions were wound from every level and 11000 put saw 3.1 lakh positions unwound and 11300 put also saw 1.6 lakh positions unwound. On the call side 11500 call added 3.3 lakh positions and 11400 call saw 2.8 lakh contracts being added. Even 12000 call saw 3.1 lakh positions built and that is the surprising news.
What is the Nifty call for the day?
We did not react much for the falling Turkish Lira, so we will also not react much for the appreciating Turkish Lira. So, our markets depends today on our fundamentals and we might open again around 11400 levels. Yesterday, if you had gone short at 11420 levels you would have met your target of 50 points when it fell to 11360 levels. Today might be more of side-ways movement and the bias is more towards downside than upside. So, I suggest stay away from taking any new positions. Lets start the fresh trade on Monday.