Expect Indian Market to continue fall on Thursday too: CRR cut will NOT help!!!

As we suggested yesterday, Indian Market did fell down but magnitude was more than expected, why? Compare to other Asian economies which were in range of 1-2% down; we fell 5-6% on Wednesday and on Tuesday also we lost initial gains. It is too much too early compare to other market but year; Indian Markets has given better returns in last 5 years since 2003 compare to other. So it is obvious that where ever FII or any hedge funds will see the profit will take out first from that country or those stocks.

Expect Indian Market to continue fall on Thursday too although magnitude will be less 1-2% downside but it will definitively fall, no RBI, no FM, no good news from corporate are good now, all the companies coming out with results will be beaten down if they slightly missed their guidance and they will miss because their earnings will be impacted by global turmoil.

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HBJ Capital's Strategies for Thu:-
#1. Hold you SHORT positions on Nifty or take a fresh SHORT Position if Nifty opens flat or upside.
#2. Those holding PUT Option should continue to hold at least till Friday; by then we are expecting Nifty to hover around 3200 level. If market opens flat or upside then one can take fresh exposure of Nifty PUT Option but in case of gap-down of more than 1-2% it would be better to wait and watch.
#3. No LONG or Call Option should be initiated now.
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News Update:-

• Equities plunged on Wednesday as sentiments turned bearish after global markets declined on recessionary concerns.
• The benchmark indices corrected sharply today on delivery-based selling and covering of long positions and fresh short build-up in index futures as well as in a few heavyweights such as Reliance Industries, State Bank of India, ICICI Bank, Larsen & Toubro and Bhel.
• The index has strong support in the range of 3200 to 3600. If the index closes below 3300, then it can retest its previous low. The trading pattern in options contracts suggests that F&O players expect the index to slip below 3300 levels as they were seen covering their short positions in 3000 and 3400 strike puts.
• There is no follow-up buying from major players on account of a lack of conviction and the liquidity crunch in the financial market. FIIs have been selling across BRIC (Brazil, Russia, China and India) nations on account of the decline in commodity prices in Brazil and Russia and a significant exposure in the banking sector in China.

-HBJ Capital Team