Morning update at 8 am 20 aug 09

Dow which was indicating more than 80 points negative in futures during europeon trading hours was highly +ve last night to finally close at 61 points +ve. European markets were absolutely flat. Brazil was .7% up. Asian markets as expected have opened in the green & may remain +ve for the day having been deceived by dows highly negative futures yesterday. China, hong kong & singapore indices which had fallen a lot yesterday are likely to show good bounce.

For indian markets, expect a good opening & but the markets are again likely to be choppy and every stop loss if fed will be triggered. Nifty may find initial resistance around 4428 levels if successfully breached, then it can move up till 4455 or even 4477 levels. Yesterdays low around 4350 is a good support although nifty if it comes to this level, may slip a bit towards 4340 before bouncing back again. Traders may buy futures & calls around 4350 levels as well as boldly short 4200 puts if at all nifty reaches this level again. If nifty moves up & reaches wednesdays starting high of 4477 then quit longs and bought calls and buy puts here. Around this level also one can boldly write 4600 calls.