Muhurat Trading Indian Stock Market Tip: 28 Oct

1. Online Share Market News: Indian brokerage houses are feeling the pain due to recession as Indiabulls, Religare, Indiainfoline, Anand Rathi, ICICIdirect, Angel Broking, Motilal Oswal etc all undertaking the measures of closing the offices and going for lesser branches as they are finding it unviable to sustain the costs involved in running multiple offices. So you may find that the branch near your house is closed due to lower revenues. Global markets are feeling the tremors with Daimler Chrysler also undertaking the job cuts to the tune of 25% and US Xerox will cut 3,000 jobs. BSE Sensex is hovering near its support of 8500-8152-7582. Thus a rebound is possible any time. Sensex faces resistance at 9900-10750. One can say that the positive trend has commenced if Sensex moves above the level of 10751 on closing basis for 3 consecutive day. If the negative sentiments persists in financial markets NSE Nifty may see the levels of 2550-2300 and Nifty has to move above the level of 3001 to strike 3050, 3250 level. Nifty has to move above 4400 level to commence on real bullish trend and till than it will be merely consolidating. Globally the panic index also called as CBOE volatility index has gone to the levels of 89.5 and has given a closing level of 79.1 on last Friday which indicates that at investors ‘panic is at grave levels. Even Asian stocks are also suffering and proof of the same is that Nikkei is hovering near 2003 bottom levels. i.e. the trough formed at 7603. It finds its further support at the level of 6850. However solace is that Japan's Nikkei has rallied after dropping below 7,000 for the first time in 26 years, following more volatile trading on markets. Other indices such as Hang Seng, KLSE Composite, Kospi, Taiwan and Thailand index have also closed below their key support levels. Asia will be affected due to the reduced demand from US and other western economies. Bullish investors are of the view that the OCT end will witness the stocks hitting the bottom of their prices and you know stock market runs on hope and pessimism as it is a sea of emotions. One may even undertake investment in stocks as a systematic investment plan as after every fall stock market rises with vengeance but do remember to give the time to the investments to at least 2-3 years. One should remember that Sensex 7700 level and Nifty 2252 level are close to the lows made on 28 Oct 2005 and these levels represents a panic bottom and thus a rebound has to take place at these levels.



2. Effect on US due to sub prime crisis: House prices will fall by another 25% in year 2009; however housing demand will pick up in coming year due to prevailing low rate of interest. 2 million jobs are likely to be lost in US and unemployment rate will touch 8% by late 2009. However sectors like Healthcare and education jobs may escape from this crisis and thus we know that which are the sectors which are recession proof. The agony is not over in US as New York Times has reported 50% decline in its net profit. AIG has borrowed $90 billion from Federal Reserve. It is a point to note that not all US states are in recession presently as 27 American states are in recession while 15 states are on the verge of recession. I hope that the actions by US Fed will at least save the states which are on the brink of recession to be saved from the agony of being called as a state in the deep of recession.

3. F&O Straddle Strategy: Presently situation is such that one can make an immense money in the market by following a Put and a call strategy but the same is equally applicable for all those with high risk appetite and we all know that the returns are directly proportional to the risk factor. One can use the opportunity to buy Nifty November 2750-call and put and one can hold the same till the expiry of November derivative contracts. The point to note here Straddle is a good F&O opportunity when one has the belief that underlying’s price will move significantly and the direction can be either upwards or downwards. However one will make money in options only if the market moves aggressively either up or down and if it trades with in a range than one is bound to lose the premium paid for buying the option strategy as recommended. In this scenario the profit can be unlimited if market finds the correct direction and makes smart moves. So, one can make money in this strategy if either market breaks violently or recovers the same way. So if you have the appetite to risk the premium paid for Option, one can enter the strategy with the rider that one can lose the premium paid if market is range bound.

4. Indian Shares Weak Futures

Bajajhind
Aban
Ivrprime
Strtech
Welguj
Essaroil
Ivrclinfra
Suzlon
Purva
Unitech.

5. Muhurat Trading Timings:Lakshmi Puja : 4:00 PM Onwards
Muhurat Trading Session Details:

Login: 05 : 15 p.m - 06 : 15 p.m.
Continuous Trading: 06 : 15 p.m - 07 : 15 p.m.
Closing: 07 : 15 p.m - 07 : 25 p.m
Post Closing: 07 : 25 p.m - 07 : 45 p.m.

Remember Indian stock market is down but not out as it will again hit back. So be a long term investor and stop looking at Sensex daily up down fluctuations.

6. Give an auspicious start to your Muhurat trading this Diwali with hot market stock tips which presents best buy opportunity for Indian Stock Market: Well, make money and thus book profit in these stocks by using Profit Booking Technique and do use the Stop Profit Technique on Weekly Charts and have a Happy and Safe Diwali with maximum Profit.

Buy Unitech>45.3,49,56 sl 43.9
Buy Suzlon>48.5,54.3,55.4,61 sl 46.5
Buy Hind Oil Exploration>60.3,64.8,70 sl 58.5