Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS :: TAX RATES - GOODS TAXABLE @ 4% :: list of goods taxed at 4% :: empanelment :: VAT Audit :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARD :: VAT RATES :: form 3cd :: cpt :: articles on VAT and GST in India :: due date for vat payment :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARDS
« Markets »
 Why we must tweak the market-led model
 PE transactions prompt income tax queries over round tripping concerns
 Amended India-Mauritius tax treaty only covers investments in shares
 Government drops cap gains tax on startup shares held for 2 years
 Tax-free bonds regain demand in the secondary market
 Relevant Market’ Under Competition Act, 2002
 Indian markets best in terms of earnings momentum, price revision
 How India will become a common market with GST
 Broader markets outperform; Nifty holds 8,500
 Have Indian markets run ahead of fundamentals?
 Sebi mulls allowing foreign VCs in infra investment firms

Market may see some consolidation
May, 19th 2010

The market witnessed some recovery in the second half of the day after trading in a narrow range in the first half. Nifty closed up by 0.12%
compared to the previous close. The index futures closed at a discount of 1.40 points to the spot market.

Futures have traded at a discount for most part of the month and we are yet to witness any short-covering in the markets. The same can also be judged in the open interest built-up in options segment where short positions are being built in the 5100 & 5200 calls, which are acting as a near-term resistance to the market.

On the puts side, the maximum open interest stays at 5000 strike and we have seen a continuous built-up of short positions at this strike during the month. This level will thus act as a strong support for the current expiry. The ATM implied volatility has cooled off from 27-28% levels to 22% in the past two days, indicating that the market will likely see some consolidation.

For the month, the maximum open interest stands at 5000 levels in puts and 5200 levels in calls, indicating that the market will change the trend once any of these levels are breached.

The current put-call ratio (PCR) stands at 1.1 which shows the markets are moving towards a comfort zone. Technically, Nifty has a strong resistance at 5150-5180 levels. The next uptrend will start if the index crosses these levels.

Also, 4980 being the 200-day DMA is expected to act as a good support level in the near term. The long-term support for the market stands at 4675 and is a crucial level for investors looking at long-term investments. The market seems to be a bit jittery as of now and investors should wait for some more consolidation before taking any fresh positions.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Company Overview

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions