Morning update for 05 aug 09

Last night dow continued with its upward march by rising 33 points. S&p 500 maintained above the 1000 mark & nasdaq also maintained above the 2000 mark. European markets closed flat so also brazilian markets. Asian markets have opened flat to mixed but may turn more negative at the time of indian opening around 9.55 am to finally close flat to mildly bearish.

For indian markets expect a flat opening. Nifty may show flat to down side movement initially to test the critical support around 4650 levels but the the range may be confined within tuesdays range with a flattish bias. However should it move up initially, only a cross over of 4700 to 4717 and sustaining above it may bring some upward strength for nifty.

Traders holding lower calls of 4600 may hold these and short 5000 or 4900 calls on market rise. Similarly put holders holding puts of 4500 may hold these and short 4300 and lower puts on intraday falls like tuesday. Future traders should resort to intraday trading only without any plan to carry over.

Now at 7 am ist, sgx nifty is showing +39 at 4715 with an interesting volume of 33 only. One must keenly observe what does it show at the time of opening of indian markets at 9.55 a.m.