Indian stock market is in confused state; Global concern will keep it in range bound with positive bias.

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Sometime even we do mistakes, our team were expecting Indian Stock Market to open lower but close at least 1-2% higher on Tue, even market tried to recover but we lost 0.5%. As we discussed earlier, there was an opportunity on Monday and that didn’t work out.

The world markets responded to one piece of news and we had two of them, so it was a double-whammy sort of thing. But the markets ended very tepid at the lows of the day on Monday. This was an indication of low confidence in our own market by because market were not responding to good news.

Global clue lead to fall in the market on Tue, even while writing DOW is down 1% due to Lehman fear inspite of crude falling down. Asian & European market already reacted on Tue and lost 50% of monday's gain.

Indian Market Update:-

• After a sluggish opening, Indian stocks recouped lost ground led by recovery in European markets but ended marginally down on profit booking.
• National Stock Exchange's 50-share Nifty closed 0.30 per cent lower at 4468. September futures provisionally settled at a premium of 12 points, down from 28 points on Monday.
• The recovery afternoon on the back of positive European cues and falling crude oil can extend to 4550 levels if global cues turn positive Wednesday.
• The Nifty September futures trimmed its premium to 12 points (the premium has soared to 28 points in intra-day deals) and ended at 4,481 as against the spot Nifty which closed with a loss of 14 points at 4,469.
• FIIs sell equities worth Rs 214Cr on September 9

HBJ Capital’s Views for tomorrow (Wed).

Truly speaking Indian Market is in confused state, it is not able to celebrate the happiness of nuke deal due to global fear. For India falling of crude prices is a good news but our markets are not reacting to it. Now only one option left, it is “Inflation” if it cools down further then one can expect some confidence in the market.

Indian market expected to open down 0.5% (20-25 points Nifty) due to global fear of financial meltdown but it will recover all the losses and bounce back in positive zone, we are expecting market to be in the range of >1% (Nifty 40-50 points up).

Trading Strategies for Wed:-

Anyone holding long position in Nifty future or Call option must stay invested with patience. We would not suggest building Short position or buying Put options until direction is very clear.

-HBJ Capital Team