October 7, 2016
Time: 9 am
Time: 9 am
- US markets ened mixed, almost flat.
- But Asian markets are down.
- That is because, in the morning British Pound fell by 10% in flash crash.
- Pound hit a low of 1.13 to a US dollar and now trading at 1.22, just two percent down.
- But the severe fall of 10% intraday triggered panic button and Asian shares fell.
- Our markets has been under performing in the last two days.
- Just ahead of crucial US jobs data, markets will be nervous all over the world.
- UK stock futures are up due to devaluation.
- But we need to see how other European markets react.
- So the fear of Pound crash and uncertanty regarding US jobs report will keep our markets jittery.
- As a whole, markets were down though this week and hence some kind of short covering rally of 40 to 50 points Nifty is not ruled out in late afternoon.
- Last two days, Nifty fell 90 points intraday without any reason, today we have a reason, we need to see how much Nifty will fall intraday.
- But last two days, Nifty rose before falling.
- Today that may not be the case.
- FIIs were net buyers in Cash Market, Stock Index and Stock futures.
- Still it is surprising such a fall takes place.
- SGX Nifty is trading slightly higher at 8742 but that may not be the right reflection of ground reality.
- So it is time to be cautious, avoid naked long positions.
- Hedge your positions, reduce Put options if you have sold.
- Nifty future should take support at 8680 which is a very crucial support.
- Resistance will be at 8800-8820 level.
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