Wednesday (Apr 15th): Investors anxiously awaiting Infosys results; market move depends on FY10 projection by Infosys.

Looking at the recent uptrend in the market, it seems there is some strength left and market is in no mood to change the direction. In case of small fall of 1-2% one should take this opportunity to buy Nifty Call options rather than Put. Only Infosys results and fy10 projections can change the sentiments if it turns out to be unexpected and worst.

Market Update:-

• The Indian stock markets remained buoyant and close higher on Monday, for the seventh consecutive day, after an intraday volatile session.
• The Nifty witnessed profit-booking above 3,400 levels, but closed with 40 points gains at 3,382 on buying in key index heavyweights such as Reliance Industries (RIL), ICICI Bank, State Bank of India (SBI) and Tata Steel. The Nifty is now expected to target 200DMA (daily moving average) of 3,445 and this may happen this week.
• The Nifty made a high of 3,357 and a low of 3,149 on April 8, and on April 9 the index made a high of 3,401 and low of 3,307. Today, the Nifty made an intraday high of 3,418 and low of 3,334. A bull trend is identified by a series of rallies where each rally exceeds the highest point of the previous rally.
• Overseas cues were positive as the US markets shrugged off the unemployment numbers and rallied smartly on Monday but on Tuesday DOW is down 1.5%. The numbers emanating from the banking system, especially Wells Fargo, fired up the markets on Monday and retail sale data pulled down on Tuesday.

New Report Launched: "Business Insights" on.....Wealth Creating Penny Stocks!!!

HBJ Cap's Views for Wed:-

1. Remember, the markets are still volatile. And volatile markets can hurt. Investors mustn't throw caution to the winds. You can see wide price fluctuations and inexplicable corrections. The risk-averse must stay away in these conditions.
2. The Nifty has been making higher highs and higher lows in the last three trading days, which indicates that the current rally is likely to sustain. The start of an uptrend is signaled when the index makes a higher low, followed by a rally above the previous high.
3. Here are some tips for those looking at investing in these conditions:

• Buy Infosys 1320 Put option and hold it for couple of days.
• Buy Nifty 3400 Call option if the market falls 1-2% on Wed due to Infosys results or due to profit booking. In case if market show volatility and remain flat, it would be better to buy Nifty 3400 Call or stay long in Nifty future with stop loss at 3,300.

- To contact the analyst on this story: JK (Technical) in Bangalore at JK@hbjcapital.com

Note: Pls read the disclaimer on this site. Investors/ traders should do their due diligence before taking any action based on our analysis. In order to provide unbiased Calls or Suggestions on FnO trading, HBJ Capital & any of its research analysts are not allowed to trade in Future and Options.

------------------------------------Ads by HBJ Cap---------------------------------
HBJ Capital - Street Smart (Mid-Cap Multibagger) of Jan'09 - Tulip Telecom Ltd
HBJ Cap's Paid Services : "One Package" @ "One Price"
HBJ Capital is looking for experts from "Equity Research".
HBJ Cap’s Apr’09 Interview Schedule: 35 aspirants shortlisted.
Winners of HBJ Cap’s Contest Announced - “Are you lucky by chance?”
------------------------------------Ads by HBJ Cap--------------------------------