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Dear Friends,
It’s a coincidence that our Finance minister will present the budget at the half way mark of Manmohan Singh hundred-day plan. It would be approximately 49 days after the Prime Minister got a fresh verdict for his government for the people. If we believe what the markets are trying to predict then insurance and banking sector reforms will display the progressive nature of the Budget. At the same time markets men expect replacement of waiver of Long-term gains. It is less then twenty-four hours before we know the actual contour of the budget. It is meaningless to speculate on this end at this time. The options premium in Nifty indicates a major build up of an event-based premium. For long straddles Nifty would need 450-500 points move to break even. Unless something dramatic happens it would be surprising to see how such a move takes place and in which direction.
Traders should note that even after Friday’s up move we are still caught in the 220 points trading range in Nifty. Traders should take the cue from the breakout or breakdown after the presentation of the budget with a strict sl. I have also mentioned the possible H&S pattern being developed in the Eod charts. Two points should be noted here. The former being that 4535 spot shouldn’t be taken out and 4210 has to be broken. If the former event occurs the H&S pattern Nullifies. One of the necessary conditions for the event to play out is that 4210 should be broken. I wont like to talk more on technicals, as it would entirely depend on the markets reaction to the budget.
NIFTY SUPPORT:-4345,4210
Nifty resistance :-4470,4508
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TSR JUNE SERIES REPORT.
PROFIT IN JUNE 212597 = IN 1 LOT
REFER
http://www.future-friend.blogspot.com/
TSR INTRA NIFTY
PROFITS IN JUNE 65750
REFER
http://www.tsrnifty.blogspot.com/
TSR OPTIONS PLAN
PROFITS IN JUNE 35311
REFER
http://www.tsroption.blogspot.com/
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