Friday

Conquering India’s Nifty

Post a Comment December 11, 2009 – 8:03 am |   | Permalink |  Print This Post |

We pulled another short at India’s NIFTY at 5165 (the resistance was at 5180) $2/point. Support is at 5090 (currently there). This beast is extremely difficult to tame - we have been trying with little success since NIFTY’s 19% rally post elections. Whilst we believe in the BRIC story and are generally bullish on India long term (since ~18% of its GDP is agriculture based) , we feel that India is due for a short term pull back. Danger is if the Dow decides to make a dash for 11300 - fueling every market to higher highs. I dare not imagine where the NIFTY could go if resistance is broken.

For now, India is the strongest market and it is at the highest level since the lows (5181). Every other market is below their highs by varying degrees. This, plus the fact that India rallied the most (thanks to the ridiculous post election 19% rally) puts it far ahead of the rest.

We will open a long ASX at 4608 $5/point and short India’s NIFTY at 5124 $5/point.

We have closed our ASX long $5/point at 4655 and NIFTY’s short at 5100. Profit of 71 x $5 = $355 (net spread)