Wednesday, November 24, 2010

F&O Expiry to add fuel to Korean fire

Dalal Street is likely to open marginally in the green and might hit the roller coaster again, thanks to the Futures & Options expiry slated for tomorrow.

US Markets sank Tuesday as a clash in the Korea peninsula was added to the list of uncertainties weighing on investors. The Dow Jones Industrial Average fell

142.21, or 1.27%, to 11, 036.37 and the S&P 500 lost 16.81, or 1.40%, to 1,181.03. The Nasdaq dropped 37.07, or 1.46%, to 2,494.95.

Asia developed cold feet on Wednesday morning with Nikkei sliding 1.18 pct while Shangai is trading in the green.

DII Buying

It is interesting to see the Domestic Institutional Investors (DII) picking stocks during the panic session on Wednesday. The next rally we believe will be triggered by DIIs and FIIs who are selling now to cash their chips for the year end may have to pay premium for buying Indian equities.

Coal India

Coal India Ltd. is open to acquiring U.S.-based Massey Energy Co , the Business Standard reported on its website Tuesday, citing the Indian company's chairman, Partha Bhattacharyya.

Market Outlook

Though Indian Markets are not out of woods, Investors can start cherry picking with the expectation of another 4-5 pct downside in the Indices. Only bravehearts can trade in this market.

It would be interesting to see if Nifty closes around 6000 or 5900 levels for the expiry.