As everyone expected, equities worldwide tumbled on Monday, fearing that Europe crisis could lead to double-dip in the equities market. The equities in Asia fell in the range of 2-4%, the commodities and financial stocks bearing the maximum brunt, LME is at eight months low.
The timings of European crisis were worse for Europe and US. Just when things were slowly building up and various economic indicators started giving positive signals, the European crisis occurred which has taken back up all the gains that US / European markets have made in this year.
Indian stocks, though has been doing pretty good, is likely to face another test of FII outflow. Though I have a feeling that we might not repeat the crash in 2008 as we have been able to show resilliance and tremendous comeback during the previous crash. Hence, any major correction can be taken as good opportunity to buy stocks.
Provisional data released by exchanges yesterday have been dismal by all means. Both Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) have been net sellers in Capital Market by around 400 and 200 Crores respectively. In Derivatives segment, FIIs have been net sellers of more than 1500 Crores in Index futures which agains gives negative cues to the markets.
US markets overnight have closed 1% down, now close to 9800 levels and hence, we may once again see a gap-down opening today morning in Indian markets. Technically, Nifty is likely to face good support at 4960-4980 range, where one may buy the Index futures. The stop-loss can be maintained if Nifty goes below 4920 while target price can be maintained at 5100. Dow Jones is also now in its support zone of 9600-9800 and if it makes any intermediate recovery from these levels would surely help Indian stock markets in recovering some of their losses.
The pair-trade recommended yesterday (Kotak Buy and SBI Sell) has given some wonderful results. In the midst of negative bias, Kotak Bank has closed positive yesterday while SBI has fallen by 2.5%. One may retain the strategy and come out on the levels mentioned in the yesterday's post.
Wishing you a great trading day today!!!
The timings of European crisis were worse for Europe and US. Just when things were slowly building up and various economic indicators started giving positive signals, the European crisis occurred which has taken back up all the gains that US / European markets have made in this year.
Indian stocks, though has been doing pretty good, is likely to face another test of FII outflow. Though I have a feeling that we might not repeat the crash in 2008 as we have been able to show resilliance and tremendous comeback during the previous crash. Hence, any major correction can be taken as good opportunity to buy stocks.
Provisional data released by exchanges yesterday have been dismal by all means. Both Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) have been net sellers in Capital Market by around 400 and 200 Crores respectively. In Derivatives segment, FIIs have been net sellers of more than 1500 Crores in Index futures which agains gives negative cues to the markets.
US markets overnight have closed 1% down, now close to 9800 levels and hence, we may once again see a gap-down opening today morning in Indian markets. Technically, Nifty is likely to face good support at 4960-4980 range, where one may buy the Index futures. The stop-loss can be maintained if Nifty goes below 4920 while target price can be maintained at 5100. Dow Jones is also now in its support zone of 9600-9800 and if it makes any intermediate recovery from these levels would surely help Indian stock markets in recovering some of their losses.
The pair-trade recommended yesterday (Kotak Buy and SBI Sell) has given some wonderful results. In the midst of negative bias, Kotak Bank has closed positive yesterday while SBI has fallen by 2.5%. One may retain the strategy and come out on the levels mentioned in the yesterday's post.
Wishing you a great trading day today!!!
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