India Morning Report: Markets reassess the strength at 5650? (Also, India Closing Report for the week of October 15-19, 2012)

Indian rupee collection

Indian rupee collection (Photo credit: Wikipedia)

 

 

Markets seem to be eager to test 5650 again in what can be said to be an observable phenomenon of the the last 6-8 months whence the second half of the FnO series is geared to a cascading short thrift on expiry, banking the gains from shorting the market consistently as writing calls becomes safe enough to support a weak trend in the fourth week. There is no real logical basis to it that makes this strategy stronger except that the bulls as usual will be in a likely wait and watch hold and most investors running in this series will not be tempted to cash out or take profits around 5700-5750 so the correction still has a less than even yet finite chance of happening making the risk reward skew to building such speculative shorts.

Some good results are yet to come but Oil buying as expected, has pressured the Rupee suddenly into trying to end the week closer to 54 if there is further weakness from the day open around 53.90 in the October series and 53.70 spot

However international Oil prices are likely a dud and so the Rupee and the equities might ell gain back a big chunk of today’s moe as at 5700 they will still end the week higher from last week’s 5676 close on Friday

The underlying bull trend remains so this hit on Nifty after every positive move of 50 points could only lead to the corrections getting an upper hand temporarily but breaching the Nifty’s 5650 support to hopes of a 5500 bottom before the Banking regulation changes and fast tracking hopes bring back the policy steam which brought forth this big run upward.

Some good results are yet to come but Oil buying as expected, has pressured the Rupee suddenly into trying to end the week closer to 54 if there is further weakness from the day open around 53.90 in the October series and 53.70 spot

However international Oil prices are likely a dud and so the Rupee and the equities might well gain back a big chunk of today’s move as at 5700 they will still end the week higher from last week’s 5676 close on Friday

The underlying bull trend remains so this hit on Nifty after every positive move of 50 points could only lead to the corrections getting an upper hand temporarily but breaching the Nifty’s 5650 support to hopes of a 5500 bottom before the Banking regulation changes and fast tracking hopes bring back the policy steam which brought forth this big run upward.

 

 

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3 thoughts on “India Morning Report: Markets reassess the strength at 5650? (Also, India Closing Report for the week of October 15-19, 2012)

  1. Pingback: Monday Trading strategies – India October 22-26, 2012 « A blog of blogs

  2. Pingback: India Morning Report: Rebuilding the India Inc dream « A blog of blogs

  3. Pingback: India Morning Report: Markets do not have to correct at all, there is no such requirement « A blog of blogs

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