Hello Readers !
Indian stock market cut initial losses and recovered in mid morning trade after Japanese shares rebounded
from an early morning sell off and the yen moderated from a new record high versus the dollar. However, it
lost ground once again after the RBI hiked rates by 25 bps and raised its inflation estimate amid persistent
worries over the global uncertainties. Market ended the session in red.
Nifty closed at 5,446.65, down by 64.50 points or 1.17 percent over the previous day closing of 5,511.15, after witnessing a low of 5,435.30 and a high of 5,510.05. Sensex closed at 18,149.87, down by 208.82
points or 1.14 percent over the previous day closing of 18,358.69. It touched an intraday low of 18,104.02 and high of 18,354.27.
The markets’ breadth was negative. Out of 2,967 stocks traded, 1,203 stocks advanced, 1,638 stocks declined and 126 stocks remained unchanged. In Sensex, 8 stocks advanced and 22 stocks declined.
Indian stock market is likely to trade range bound as no triggers are visible for an upside. Instead, RBI inflation outlook that has been raised from 7% to 8% for March 2011 may dampen sentiments. However, no sharp reaction to this may be seen either. Buy Mirza International and also Fedders Lloyds, Whirlpool and
Bluestar, falling copper prices, summer demand likely to boost their prices.
OPTION STRATEGY
Scrip/Index: BHEL
Strategy: Long Call option
Current Price of Underlying: Rs 1964/- Lot Size: 125
Long Mar 2000 Call option @ Rs 28/-
Profitable when closing price is below Rs 2028/- on expiry
Maximum Potential Profit: Unlimited Maximum Possible Loss: Rs 3,500/-
Time to Expiry: 14 days
Indian stock market cut initial losses and recovered in mid morning trade after Japanese shares rebounded
from an early morning sell off and the yen moderated from a new record high versus the dollar. However, it
lost ground once again after the RBI hiked rates by 25 bps and raised its inflation estimate amid persistent
worries over the global uncertainties. Market ended the session in red.
points or 1.14 percent over the previous day closing of 18,358.69. It touched an intraday low of 18,104.02 and high of 18,354.27.
The markets’ breadth was negative. Out of 2,967 stocks traded, 1,203 stocks advanced, 1,638 stocks declined and 126 stocks remained unchanged. In Sensex, 8 stocks advanced and 22 stocks declined.
Indian stock market is likely to trade range bound as no triggers are visible for an upside. Instead, RBI inflation outlook that has been raised from 7% to 8% for March 2011 may dampen sentiments. However, no sharp reaction to this may be seen either. Buy Mirza International and also Fedders Lloyds, Whirlpool and
Bluestar, falling copper prices, summer demand likely to boost their prices.
OPTION STRATEGY
Scrip/Index: BHEL
Strategy: Long Call option
Current Price of Underlying: Rs 1964/- Lot Size: 125
Long Mar 2000 Call option @ Rs 28/-
Profitable when closing price is below Rs 2028/- on expiry
Maximum Potential Profit: Unlimited Maximum Possible Loss: Rs 3,500/-
Time to Expiry: 14 days
Thanks & Regards
Dev Purohit
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