Our heads of regulating bodies are at severe struggle than ever before to provide liquidity in banking system. Though the fundamentals will erode as time goes on the present pressures on the markets are heavy selling by FII coupled with the very heavy redemption pressures from our Mutual funds.
On the one side our Govt agencies are working well to provide liquidity by cutting the CRR rate. A chance of repo rate cut is also there. Latest curb on PSUs not to press for redemption from any mutual fund investments is also of the same nature of measures by our Govt. Very good efforts. But the other side of the coin is to ease pressures from FII out flows and that is not in our hands.
Markets should come down as time goes on if not this week/month but on the next week/ month. War in world economy is not yet over but in the middle only. After some time only clarity will emerge.
For our markets as the strong recovery of our markets from sensex 10000 and yesterday's Dow +ve closing , Asian markets +ve trading shows we also trade in +ve territory. Nifty levels 3440 - 3650 upside and 3200 down side. If nifty comes below 3200 it will close below 3000.
Let us trade on intra day basis for the week on long side. After markets not sustaining at higher levels i.e., 3650 we may target to trade to down side by buying puts at 3400 level.
To day markets are on long side only. Intra day shorts for small ranges.
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