Buy Nifty PUT option and hold it for next 4 days.

HBJ Capital believes that Indian stock market will fall in line with US/UK stock market due to renewed concern of credit crisis.....so, in this present scenarios buying Nifty 4000 or 3800 PUT Option of July can be a better bet.

Why?

• On July 15th, there are important data like Retail Sales, Mfg Index, Producer price index etc are going to be announced which will add fuel to fire. People in India will try building Short which will bring down the index.

• At the time of writing, Dow is down 52 points and Nasdaq is down 25 points. It is simple, let us assume that US govt is able to rescue these two housing finance giants, but for any dumb guy also it is clear that credit crisis is not over and it is spreading more and more. Govt is going to save these compaines with who's money, it is tax payers only, so indirectly public are paying for bailout.

• Remember that in US election is going to happen, so govt will try not to create any type of panic now but once new govt is formed, they will recover these bailout money by imposing more tax on public, which will further reduce consumption. US, a consumption based economy will hit hard if consumption is lowered.

• Stock market moved in the future, in fact it is 6 months ahead from now, so what is going to happen across globe will be reflected now itself in the stock market.

- HBJ Capital Team.