Last night dow recovered from a bigger fall to close nearly flat with only 24 points down, however important index s&p500 breached the 1000 mark to close at 997. Brazil was down by more than 1%.european markets closed in the +ve with uk ftse closing up by .9%.most of the asian markets which did not correct yesterday are likely to correct today at the back of fall in indian and chinese markets yesterday. Hong kong, singapore, taiwan & japan indices are to be the hardest hit.
For indian markets, since the more than 2% fall on thursday was worse than most of the other equity markets of the world, there is likely hood of some sort of corrective upward bounce after retest of thursdays lows. There might be a tug of war between the bulls & bears to close nifty above or below last weeks closing levels of 4636 but most likely the markets will close below the last weeks close to pause a bit in the weekly charts after 3 consecutive weeks of rise. Traders are advised to trade in limited quantity confining to intraday trades only without carry over of large un hedged future positions for next week . Option traders may continue with the plan of holding both calls and put options along with shorted higher calls as well as shorted lower puts.
For intraday trading on friday, only a decisive cross over of pivot around 4620 followed by 4656 can infuse some hope for the bulls or else markets are likely to be range bound with a negative bias. Approaching & crossing of last weeks highs of 4670 is likely to invite ruthless shorting again.
For indian markets, since the more than 2% fall on thursday was worse than most of the other equity markets of the world, there is likely hood of some sort of corrective upward bounce after retest of thursdays lows. There might be a tug of war between the bulls & bears to close nifty above or below last weeks closing levels of 4636 but most likely the markets will close below the last weeks close to pause a bit in the weekly charts after 3 consecutive weeks of rise. Traders are advised to trade in limited quantity confining to intraday trades only without carry over of large un hedged future positions for next week . Option traders may continue with the plan of holding both calls and put options along with shorted higher calls as well as shorted lower puts.
For intraday trading on friday, only a decisive cross over of pivot around 4620 followed by 4656 can infuse some hope for the bulls or else markets are likely to be range bound with a negative bias. Approaching & crossing of last weeks highs of 4670 is likely to invite ruthless shorting again.
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