Thursday, June 2, 2011

MARKET OUTLOOK FOR 2ND JUNE 2011

NEGATIVE GLOBAL CUES  COULD  DRAG  OUR MARKETS DOWN.  DOW  CLOSED  279 POINTS DOWN; EU MARKETS  SHED MORE THAN 1% EACH.  ASIAN MARKETS FOLLOWED SUIT  WITH NIKKEI TRADNG   - 166 POINTS. HANGSENG IS DOWN 355 POINTS.
SGX NIFTY IS  TRADING T 5535, DOWN 60  POINTS.  FEARS OF  A SLOWING  US ECONOMY HAS LED TO  HAMMERING OF STOCKS IN THE US.  THE PROSPECT OF  GREECE DEFAULTING ON ITS  DEBT OBLIGATIONS IS LOOMING LARGE ON EUROPEAN FINANCIAL SYSTEM.  SLOWER ECONOMIC GROWTH IN CHINA IS ANOTHER CAUSE OF WORRY. AT HOME,  LOWER THAN EXPECTED GDP GROWTH IN FY 2011 AND  SLOWING INDUSTRIAL GROWTH, RISING INFLATION AND  PROSPECTS OF  FURTHER HIKE IN INTEREST RATES  ADD UP TO THE WOES OF INVESTORS BOTH DOMESTIC AND FOREIGN.

WE EXPECT A  GAP  DOWN OPENING WITH ABOUT  50 POINTS DOWN,  AROUND 5540.
 BOOK FULL PROFITS  IN NIFTY 5600 PUTS AROUND 140. BUY CALL GIVEN AT 100 YESTERDAY.

RAJAN IYER

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