LIC Housing Finance Scam really knocked the steam out of the markets which were showing all signs of reversing a trend yesterday. However, I think it should be better today, Banks though still have some more downside left. But overall, Nifty should move up from here, as it has a strong support coming up at 5850 levels, with another decent support coming up at 5750.
Overall markets will continue to remain cautious, with Ireland bankruptcy possibility still lurking around the corner and new issues like the N/S Korea war creating further jitters. But overall, I don't think in the times of geopolitical distortions, currency wars, protectionism, etc, a military war-game is required...there are better and more advanced tools available now to kill an economy ! So expect markets to gradually tide over these news, and focus on the regulations, policies, dictats...for these will be driving the world for some time to come.
Just a quick word on the trading strategy for Nifty, i think selling a Dec 5700 put (currently at 95) should work out in this scenario as Nifty looks unlikely to breach 5700, in which case time decay will take the value out of this instrument. Aggressive traders can even look at selling 5800 puts.
(Disclaimer: Please do your own research before taking any positions. I am not a trader / investment advisor and may have vested interests in recommendations).
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