HBJ Capital Team has suggested traders to take position in Nifty Call Option today, and to our surprise Nifty moved 145 points today itself, lead by heavy buying from FII & Short covering. We were expecting thi type of movement slowly over the 3-4 days time period, it was too fast too early, hence headroom for further movement upward is dimnishing.
Now the question is what will happen on Monday?
Let's do lateral thinking now......
During this week Sensex moved up by 1000+ points and Nifty by 300+ points. Was there any macro/micro economic factor which got changed, No, Crude might have come down but it is a matter of time it will bounce back, because it has not come down due to decrease in demand from US or India/China rather then due to speculation (traders are either building short position or booking profits). Financial sector in US is still under pain. Inflation in India is skyrocking, at the same time RBI is planning some more tightening to curb the inflation. IIP numbers speaks about the future.
So, what next on monday,......Yes, it will be a profit booking day, and HBJ Capital expect Indian markets to fall by 2-3% on Monday, UPA govt will win the majority but market will not celebrate that because no govt in history has done any great things for corportate in their last months of tenure. Govt will now focus on "aam aadmi".
Suggestion.....Traders can either SHORT the Nifty future or Buy 4000 PUT Option of Nifty on Monday, just keep it for couple of days, book profit and exit.
-HBJ Capital Team
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