Bullish mode today

The Dow closed on a significantly positive note due to lower joblessness claims. Taking the early opening cues from US markets, European markets also rallied between 1-2% yesterday. Key Asian markets have opened in the green and we expect a positive opening for our markets too. Crude closed higher at $79.97/bbl while gold also rallied to $1047/oz.

Institutional activity on the cash segment saw significant volumes yesterday with FIIs selling INR 2546 crs while DIIs purchased INR 977 crs. Yesterday was expiry day and Nifty October futures rolled at a higher rollover cost - implying bullish bias. Nifty November put options are congested around the 4600/4800 levels while call options indicate 5000 as the upside hurdle.

Market closed at 4750 yesterday and we expect a positive opening close to 4800 levels. As I mentioned yesterday, it was a good day to start putting money back into the market.

In the short-term, oscillators and stochastic indicate oversold positions. On upside if market breaks 4870, then we are likely to test 4900 again. On the downside, 4770/4665 continue to be strong supports.

Time to start putting money from investing perspective

The Dow closed negative note on account of concerns about slower global recovery. European markets also closed deep in the red.Today key Asian markets have opened on a negative note and we expect a negative opening for our markets too. Crude closed lower at $77.15/bbl and gold also saw a fall and closed lower at $1032/oz.

Institutional activity on the cash segment mixed with FIIs selling INR 723 crs whileDIIs purchased INR 896 crs. Today is the expiry day so expect a choppy session. Aggregate rollovers so far have been over 61% indicating willingness to participate despiterecent nervousness. Key supports for the day are 4770/4670 while on the upside 5065 remains a crucial resistance level.

4700-4800 is a good time for long-term investors to start putting money in the market. Market has been making higher tops and higher bottoms on the charts. In the last pull back from 4800, we saw a bottom at 4450-4500. From the current high top of 5200, the 50% retracement level of 4665 looks unlikely to be breached at the moment.