Caution on FII sales in index futures, fall in Nifty Oct premium MUMBAI: Though things look positive with US lawmakers agreeing on a $700 billion bank-rescue package and House of Representatives approving the nuclear deal with India, indicators in the futures sketch a shaky picture for Indian markets on Monday.
On Friday, Nifty October futures trimmed premium and foreign players sold in index futures and today Singapore Nifty was in 11 points discount. After starting with the 48 points premium Thursday, Nifty October futures trimmed premium and closed at a premium of 13 point and just added 4.88 lakh shares in open interest. This signals players have gone short on the markets at higher levels. Even though U.S. lawmakers said they have made a breakthrough in talks on a $700 billion plan to revive the credit markets and expect to announce an agreement on legislation later today, analysts are not optimistic on this. "If the US rescue plan goes through, market may witness a pull-back rally. But it won't change the trend; it may only delay the fall," said Sachin Chavan, an independent analyst. Analysts are also not optimistic on the second quarter corporate numbers, which will start to trickle in next week, as the global slowdown and high inflation are likely to eclipse profits. "Given the rising signs of global slowdown which may eclipse corporate profits, market will likely to remain under pressure for some more time. Markets will largely be news driven. I expect Nifty to take support at 3800-3750 levels where we have seen put selling," said Akash Chopra, analyst at Globe-One Advisory. Call buying was observed at 4000 strike while bears wrote calls at strike 4100-4500. On the other hand, put buying was seen at 4000-3800 levels while 3750 saw put writing where Nifty might take support. Learning Center- http://learning.investorline.co.in/ Mutual funds - http://mutualfunds.investorline.co.in/ Life Insurance - http://insurance.investorline.co.in/ Inflation for week ended Sep 13 remained unchanged at 12.14 per cent. The wholesale price index based inflation has stabilized on a year-on-year basis, but still far above the 3.5 per cent for the same week last year. "At present we are certainly not optimistic on markets. The Sensex is headed for a test of 12500 after respecting resistance at 14000. The primary trend remains down and failure of 12500 would warn of a down-swing with a target of 10000," said Anand Sinha, equity strategist at Raxson Wealth. "At current point of time we are not going short on the markets. Rather, we are advising players to cover shorts at these levels and go long keeping a strict stop loss," said Siddhartha Bhamre, fund manager at Angel Broking. Foreign institutional investors' net sold futures worth Rs 123.75 crore while they net bought options to the tune of Rs 296.97 crore on Friday. In Asia, stocks fell for a fifth day led by shipping and commodities companies. Concerns are the US bailout plan won't arrest slowing global growth. -- Visit site at – http://investorline.co.in/ Learning Center- http://learning.investorline.co.in/ Mutual funds - http://mutualfunds.investorline.co.in/ Life Insurance - http://insurance.investorline.co.in/ Investor Forums- http://forums.investorline.co.in/ Iwebs Open Source Web Publishing Platform - http://webs.investorline.co.in/iwebs/ --~--~---------~--~----~------------~-------~--~----~ Get latest market updates & search internet right from your browser-download our toolbar here- http://investorline.ourtoolbar.com/ Visit our site at – http://investorline.co.in/ Newsroom: http://newsroom.investorline.co.in/ Learning Center- http://learning.investorline.co.in/ Mutual funds - http://mutualfunds.investorline.co.in/ Life Insurance - http://insurance.investorline.co.in/ Investor Journal - http://research.investorline.co.in/ Newscatcher- http://catcher.investorline.co.in/ Interested in Financial Planning-Let us Contact you- http://spreadsheets.google.com/viewform?key=pb_z4f1_zGMg4iBBFT3-SWQ&email=true If you like the site then promote it here- https://www.freetellafriend.com/tell/?url=http://investorline.co.in/blogs/news Create your own free blog on- http://investorline.co.in/blogger Visit this group at http://groups.google.com/group/india-investor -~----------~----~----~----~------~----~------~--~---
