We Forecast .Markets Decide ..

"Nifty had a free fall " - almost getting it to 7800 mark and then dropping suddenly below 7700 levels . As posted earlier I don't see much of buying at current levels , there may be euphoria on budget day but I expect some correction on equities globally . I am closing my long Nifty futures at 7650 and expect the Nifty to close below 7700 for July series . Coming up today Economic Survey which gives us current economic scenario and measures taken during the last year , and budget coming up tomorrow . Budget failed to impress the markets but some good measures that government will allow FDI participation to improve quality and growth for railways. Also earnings to start on Friday with Infy numbers and will be looking for performance in Q1 for corporates and the impact on Indian Markets . S&P fell to around 1960 levels followed by equities worldwide , I think Fed has got a hint that its time to raise rates or cut down on easing sharply with strong numbers on unempl

We are just 4 days for the budget from the new government , is it going to give reforms for the current financial year . It has already taken some bold moves by rising oil prices and passenger / freight fares last month . Expect Nifty to break barriers in case the budget is investor friendly or fall around support level if its the other way around . Equities at all time high globally and already in the overbought zone technically , I think Nifty may not surpass 7800 levels and will be looking to buy at lower levels . Other factors influencing the Nifty will be the Q1 earning this week and monsoon factor [overall still looking weak]. US stock were at all time high on strong employment numbers , analysts predict the earnings report to be flat starting this week . There is a chance that some companies in US will clock double digit growth for the first time in three years . I don't see an upside in equities as Fed needs to think a bit to raise rates and stop the free money flowing in

Nifty was at record high and closed around 7751 and I think it has already priced in the gains of the budget , I have already taken a protective stance on my positions by taking a 2 lots of Nifty futures 2 days back . Will be looking to square of my positions after the budget . Earning season start next week with Infosys announcing its Q1 results on July 11 . We also have the budget on July 10 and hence expecting lot of volatility next week . US employment figures jumped in June and the jobless rate is below 6.5 threshold of the Fed for the third time in a row . This indicates that economy is picking up as an whole , fiscal deficit also narrowed down due to jump in exports last month . Global equities jumped on the results and most of the stocks trade near all time high last week . Looks like equities are bit stretched and will be looking to sell towards end of this month . Dollar was strong across the board among major currencies except for Canadian Dollar and I am already long doll

Market hinting for a rally and hence to protect my Sell Calls , I am buying 2 Lots of Nifty Futures at 7709 for July Series ..