NSE has moved towards its target of 4650 levels. However it traced back from the resistance level. It has to close above 4670 to make any decisive move. I expect the sensex to move sideways for a few more days. Further reduction in crude price could be one trigger. Growth has already slowed down, however this may have already been factored into the price. June IIP growth nos showed a Q0Q increase and should be higher July onwards due to base effects.
The question is, Has the drop in growth has bottomed out?'.
Options Trading Strategy: Write 'On the Money' calls cover above 4650-4670. Buy Put options (out of money)
August 13, 2008