Daily Call - Apr 7 2010

Dow recouped intraday losses to end flat while S & P 500 and Nasdaq closed with modest gains on the back of assurance emanating from the minutes of the Fed’s latest policy meeting that easy money conditions would continue. Oil, gold and Dollar all rose, though modestly.


Our markets took a breather yesterday after running hard for two days. Mid-cap and Small-cap stocks however continued their upward journey. Massive activity was witnessed in Nifty options where FIIs bought worth almost Rs. 1200 cr compared to buying of Rs. 350 cr. in index futures. Nifty calls added 15 lakh shares in open interest while Puts OI went up by 27 lakh shares. Mid-cap and small-cap stocks continue to hog the limelight and that’s where traders should concentrate as the Nifty consolidates. Meaningful resistance in Nifty comes only around 5470 where trendline adjoining tops of October 2009 and January 2010 is placed. 5235 continues to be key support.