Daily Call - July 22 2008

The markets continued to strengthen for the third day on Monday as bulls showed no sign of easing their strangle hold on the bears. The fact that the Nifty Futures were traded at a premium of 6 points indicates that the shorts were covered. Also in stock futures we lost 1.5 cr shares of OI which indicates that profits have been booked in positions built over the past days.



The FIIs have turned buyers again in Index futures. Crude is marginally up but will not affect the sentiment. Sentiment was poor in the US as Apple, Texas Instruments and American Express were marked down by at least 10% each with the Nasdaq After Hours Indicator registering a 45 points fall, the largest we have seen in recent history. However, as our markets re-open tomorrow, they will be guided by the outcome of the trust vote and not how US fairs tonight. As you are already hedged, there is nothing more you need to do but twiddle your thumbs. If a large number of MPs fail to turn up there is possibility that the markets could sense which way the wind will blow before the vote.