Indian markets are currently trading on the band of 2700-2900. Today they opened at 2700, and kept moving up for the whole session, and closed at the day's high.
The market were up mostly on expectations of good results as well as more clarity on the situation as Citigroup as well as Bank of America were announcing their results today. Both the stocks had been hammered in the last couple of days by the traders.
I personally have a negative bias on the market, and would be short the market till 2700. I would think that the Jan expiry would be close to 2600-2700 levels.
On the volatility front, I think that the vols would remain high till the general elections in May 09. Currently they are trading in the range 45%-50%, and I think they would continue to trade in the 40%+ range for some time. Going forward, I won't be surprised if there is a spike in vols to the 60% levels also as there are a lot of big names announcing their results soon.
I would be short markets at 2800 levels, and long vols at 45% levels. Lets see how it plays out next week.
The market were up mostly on expectations of good results as well as more clarity on the situation as Citigroup as well as Bank of America were announcing their results today. Both the stocks had been hammered in the last couple of days by the traders.
I personally have a negative bias on the market, and would be short the market till 2700. I would think that the Jan expiry would be close to 2600-2700 levels.
On the volatility front, I think that the vols would remain high till the general elections in May 09. Currently they are trading in the range 45%-50%, and I think they would continue to trade in the 40%+ range for some time. Going forward, I won't be surprised if there is a spike in vols to the 60% levels also as there are a lot of big names announcing their results soon.
I would be short markets at 2800 levels, and long vols at 45% levels. Lets see how it plays out next week.
No comments:
Post a Comment