INTRADAY CALLS – 31/10/08

     GLOBAL RECOVERY MAY BE SHORT LIVED

 

 

DOW JONES HAS BEEN SWINGING WIDELY FOR THE PAST TWO DAYS ALTERNATING BETWEEN PLUS AND MINUS ALTHOUGH STAYING BROADLY IN THE RANGE. YESTERDAY DOW OPENED HIGHER ON LOWER THAN EXPECTED DECLINE ? OF 0.3% IN ADVANCE THIRD QUARTER GDP FORECASTS AND TOUCHED THE DAY`S BEST LEVEL OF 9266 GAINING 276 POINTS. BUT AT NOON ALL THE GAINS WERE NEUTRALISED AS IT TOUCHED THE LOW OF 8976 AND MANAGED TO END THE DAY AT 9180, WITH A GAIN OF 189 POINTS.  JOBLESS CLAIMS WERE LITTLE MORE THAN EXPECTATION AT 479000.  ASIAN MARKETS OPENED LOWER AFTER LARGE GAINS YESTERDAY AND NIKKEI IS TRADING DOWN BY 245 POINTS AT THIS TIME. DOW JONES IS STILL NOT OUT OF THE WOODS AND MAY SEEK LOWER LEVELS IN THE SHORT TERM IF IT FAILS TO MOVE  ABOVE 9500 LEVELS.

NIFTY FUTURE ON THE LAST DAY OF THE OCTOBER SETTLEMENT WAS RANGE BOUND BETWEEN 2760 AND 2632 AFTER THE PREVIOUS DAY`S STRONG GAINS AND CLOSED AT 2697 LOSING OVER 1590 POINTS IN THE SETTLEMENT.

NIFTY SUPP LEVELS 2671,2616,2516 RESIST 2774,2880,3040. AVOID SHORT DURING THE DAY IF NIFTY FUTURE TRADES ABOVE 2775. AVOID  ALL LONGS BELOW 2610. MARKETS MAY OPEN MARGINALLY HIGHER. HOWEVER, AS OF NOW  THIS IS STILL ONLY A  PULL BACK AND IT MAY REVERSE TO LOWER LEVELS IN THE COMING DAYS.  ABOVE 2775, NIFTY FUTURE MAY SEEK 3000 LEVELS, WHERE WE WILL ADVISE YOU OF FURTHER MOVEMENTS. BOOK PROFITS AT HIGHER LEVELS AND WAIT FOR THE TRADES. DUE TO PAUCITY OF TIMES STOCK CALLS ARE NOT GIVEN TODAY.

DO NOT AVOID SL AND HEDGING IS THE ONLY WAY TO SUSTAIN THE VOLATILE MARKET.HAVE A GOOD DAY. Replies At This ColoumN OR AT vijay.calls@yahoo.co.in