Happy Ganesha Chaturthi to all the readers. Let the blessings of the god of good things be showered upon all of us.
Markets are closed today. Let us review how the day was yesterday.
NIFTY closed higher by 82 points.
I had written yesterday that we may see some short covering. Mainly the rise was due to US Dollar softening against the INR. It was to happen some day and we have no right to expect a continuous down move everyday.
There was huge volatility during the day. Look at the NIFTY move for the day.
It had gone in the negative zone too giving rise to expectations and then zoomed all the way up. Looks like an opportunity lost but we live to fight another day.
HINDPETRO did as expected while making a new 52 week low at Rs. 233.25.
After that it moved up as the Dollar weakness brought down the domestic crude oil price. This is how the chart looks for HINDPETRO for the day.
I believe we shall see down move from this point depending on international price of Crude Oil. During trading yesterday, the price on MCX had fallen to Rs. 5020 per barrel whereas it closed at Rs. 5070 at close of trading. Our markets are closed today but the rest of the world is trading. What happens there today will be reflected in our markets tomorrow.
Even with 82 point gain in NIFTY , 5 out of 6 stocks selected by us were losers for the day.
Only IBULHSGFIN ended with gains. We are already ITM in that stock and that reduced our profit considerably. All other 5 PUTS contributed slightly ( ZEEL PUT 450 did not ) to make up for this but we ended a little worse than previous day. Anyway, that was expected with such a strong up move.
This is how our trading position looks right now.
Asian Markets are in the green today. SGX NIFTY is up by more than 70 points. We had lot of data regarding Inflation and Industrial Output which is likely to act positive for the market. It would not be a surprise if NIFTY goes up by another 80-100 points when the market opens tomorrow. Again it will not be a surprise if that does not happen. Rupee strength and Crude Oil will again have a role in determining the market direction.
Enjoy the holiday and get ready for tomorrow.