Home > Market View > NIFTY at 2009 highs -What next?

NIFTY at 2009 highs -What next?

Monday, August 31, 2009 Leave a comment Go to comments

NIFTY has so far behaved according the expectations. Seven consecutive days in the green!

Last week’s outperformers included stocks like L&T and stocks from oil and gas. (Aban offshore in particular) . Also one of my favourite large caps Infosys Technologies is leading from the front. Sometimes, my predictions do go right!

The bears got no favourable support from the global markets and are still licking their wounds. They might launch a big attack sometime this week to scare away the bulls. As stock market trading is more of a mind game, this might again create doubts in the minds of some players. I’d use any such correction to add some potential rockets.

I had suggested last time that one should start thinking of hedging once NIFTY starts to move beyond 4700+ levels. The best way might be to sell higher level call options (covered call strategy) just in case you wish to keep your long positions.

I have some big targets in mind for this current upmove. So let’s be a bit more greedy but also keep a sharp eye on our risk. If you go overboard or leverage too much, you might gift away this advantage.

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