Morning update on 11 aug 09

Last night dow closed 32 points in the red however s&p500 still maintained it self above the critical 1000 mark. European markets closed flat to mildly weak with uk ftse closing mildly down by .2%. Brazil was up by .9%.asian markets have opened flat to mildly weak and may remain weak to mixed for the day.

For indian markets, one should generally expect a bounce as the indices had closed near the lowest point of the day near the 50 dma yesterday. Nifty may be confined to the trading range of 4510 pivot levels on the up side and 4480 to 4390 support levels on the down side.50 day moving average around 4400 levels which nifty touched yesterday should also provide support & in case nifty goes below it, nifty may be pulled up towards this 50 dma by end of the day. Similarly if nifty goes far above it towards 20 dma at 4500 levels, to sustain above it and the pivot at 4512, then it can move up till 4550 levels. A decisive close above 4515 may bring some hopes of further up move on wednesday if rain gods are kind enough.

Traders may like to trade on the +ve side of the market today. In case nifty approaches towards 4400 or even 4380, traders may buy 4500 calls and futures for intraday gains. As the markets are already looking oversold, traders may look for the intraday fall to buy & should book early profits at own level of comfort & re enter at lower levels instead of waiting for resistance levels to book profits. Long term investors must make full use of this type of falls to quietly accumulate without bothering for the shorting interest of intraday traders.

Hyderabad is having good rains this morning & we hope rain gods are kind enough to follow it up for other parts of the country from today onwards.