Markets and News!

For two days going short made you money. Today is not so different day but you need to take positions much more cautiously thn last 2 days. The reason is simple. US has corrected a bit on the worries like GE reporting bad numbers due to which the entire manufacturing sector is in some worry. Second is one crude is falling as the shale gas production is US is going up. Brent is now trading at 61.50 dollars which is a good news for India.

Another big macro data that we got yesterday was the Balance of Payments data. October saw a multi year low at 23 billion dollar pushing the trade deficit to above 14 billion dollars. Exports fell mainly due to ready made textiles and Gems and Jewellery. Both are attributed to GST related worries. Markets will be worried as to how to take this data.

On the derivative front!

NIFTY futures are still showing some signs of bullishness with the premium trading at 45 rupees though there was a fall yesterday. That indicates that at 10150 or below you will find buyers for NIFTY. The options data however is still harsh with unwinding happening at 10200 put and short positions are moving towards 10000 put. But lot many calls are being written at 10300 level and that shows 10380 is the near term top for the market. 10200 puts are bought and 10300 and 10400 calls were sold indicating that this is still sell on rally market. The NIFTY put call ratio dropped to 1.19 by the end of the day from 1.22 seen at the beginning of the day.

What is the NIFTY strategy for the day?

NIFTY will open at 10150 around range and 10100 is the 50 day moving average which is a strong support. That means its not wise to take a short position if the NIFTY is below 10150. The wise strategy is to see where NIFTY goes after 10AM and take a call. Its wise to step aside and wait. Going long or short at this moment is not really advisable. 10110 is a strong support and 10200 should be the resistance. That makes things difficult.

Q2 results for today

1. CARE Ratings
2. Somany ceramics
3. Wonderla Holidays