Indian Equity Markets gave up some of its early week gains as renewed concerns on European financial system surfaced and downgrading by Fitch of Spanish banks also put further pressure on Asian markets. European markets also opened in red in the afternoon which put further pressure on the Indian stock markets. Finally, Indian benchmark indices closed in red by around 0.8%.
Provisional data though, gave somewhat different picture. Foreign Institutional Investors came out as net buyers by around 800 Crores while Domestic Institutional Investors were net sellers by around 200 Crores. In the derivatives market, the volumes generated by FIIs were tremendous (around double of usual day's trading) and were net sellers in index and stock futures segment by around 800 Crores. Thus it seems that FIIs have been hedging their stocks portfolio by taking a reverse position in the derivatives market.
Dow Jones closed down 1.5% overnight on renewed concerns about housing sales dropped by 2% m-o-m which was more than expected. Also S&P downgrading of BNP Paribas bank also put pressure on US stock markets. The weak closing in US will ensure weak opening for Asian markets when they open today morning.
Nifty is likely to open below 5300 today. One may adopt "Sell on Rise" strategy for today's trading and sell Nifty around 5300 mark (5290-5300) with strict stop-loss of 5320 and target levels of 5255. As it's an expiry week, hence one is advised to follow target levels and stop-loss levels strictly. The traders who have taken sell positions yesterday, may book profits in the gap down opening.
Amongst the stocks, Maruti and TCS have already been recommended for Sell. The short to medium term investors may buy Gujarat Flourochemicals. It's an INOX group company with interests in flouro chemicals and renewable source of energy. The company also trades in Carbon credits. One may enter into this stock in 150-155 range with stop-loss maintained at 140 and target price of 170-175.
Wishing you a great trading day today!!!
Provisional data though, gave somewhat different picture. Foreign Institutional Investors came out as net buyers by around 800 Crores while Domestic Institutional Investors were net sellers by around 200 Crores. In the derivatives market, the volumes generated by FIIs were tremendous (around double of usual day's trading) and were net sellers in index and stock futures segment by around 800 Crores. Thus it seems that FIIs have been hedging their stocks portfolio by taking a reverse position in the derivatives market.
Dow Jones closed down 1.5% overnight on renewed concerns about housing sales dropped by 2% m-o-m which was more than expected. Also S&P downgrading of BNP Paribas bank also put pressure on US stock markets. The weak closing in US will ensure weak opening for Asian markets when they open today morning.
Nifty is likely to open below 5300 today. One may adopt "Sell on Rise" strategy for today's trading and sell Nifty around 5300 mark (5290-5300) with strict stop-loss of 5320 and target levels of 5255. As it's an expiry week, hence one is advised to follow target levels and stop-loss levels strictly. The traders who have taken sell positions yesterday, may book profits in the gap down opening.
Amongst the stocks, Maruti and TCS have already been recommended for Sell. The short to medium term investors may buy Gujarat Flourochemicals. It's an INOX group company with interests in flouro chemicals and renewable source of energy. The company also trades in Carbon credits. One may enter into this stock in 150-155 range with stop-loss maintained at 140 and target price of 170-175.
Wishing you a great trading day today!!!
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