Morning update at 8 am 24 aug 09

Dows 155 point rise coupled with a break out move of s&p500 to close above the level of 1025 has given the right impetus to the world markets for another bout of sharp up move towards fresh august highs. Brazil was up by 1.6% and european markets were up from 2 to 3% with uk ftse closing up by 2%. Asian markets have opened with big gap & may continue to inch up in coming days.

For indian markets, one may see a big gap up opening around 4600 levels but whether the critical level at 4619 will be decisively crossed today or not has to be seen. Traders may wait for any intraday decline to enter long positions in their favorite stocks. Option traders holding long positions in calls may hold the calls and write calls of 4700 on market rise. Put writers of 4400 & below should book profit on shorted puts as nse index reaches 4600 levels. Put buyers may quit early or buy calls of 4600.fresh traders may wait for the intraday decline in index to buy september futures and 4700 calls & hold.

Stocks in the sectors of metals, cement, oil & gas exploration, power and pharma which had seen sharpest fall or were subdued during last week, may have the sharpest rise during the current rise. Traders & investors may accumulate these on every decline for very good gains in the near term.