Global mood is quite jittery today, S&P has downgraded credit rating of Greece and Portugal that sparked fears about euro-zone economic stability.
Another twist in the arm came as Goldman Sachs case on Capitol Hill heightened the possibility of financial reform in US as Senators hammered Goldman Sachs Group Inc. executives for taking advantage of the housing bubble and making billions off that market’s collapse.
In the global seen it was the worst day in last 3 month, the CBOE Vix volatility index .VIX, Wall Street’s barometer of investor fear, jumped about 31 percent, its biggest one-day move since October 2008.
All the global Indices were down anywhere between 2 to 6 % and Asia has followed its global peers. Nikkei 225 and Hang Seng are trading down 2% and India will also open in the red today.
Nifty may open around 5230 and and got very good support at 5180, expected trading range for today is 5180 to 5260 on the Nifty.
Market strategy: Short position taken few weeks back are still a hold as market trend is looking down, but if at any point of time during the trade we get 5180 my advice will be to square off the Short position and we will look for next trading opportunity in May Futures.