The End of the relief package, with the possibility of Interest Rate increase, the US market slipped down to close in yesterday’s trade and Dow Jones closed down 0.25 percent. Dao Jones weakened after continuous nine consecutive sessions. At the same time, Nasdaq 0.5 percent and S & P 500 index slipped by 0.3 percent. Meanwhile, the Ministry of External Affairs has confirmed that North Korea could make a nuclear explosion in the Pacific Ocean. While the US has imposed a new ban on North Korea, it has said that it will not have any relation with the companies are doing business there. At the same time, China has asked its banks to stop business from North Korea. Meanwhile S & P has reduced the credit rating of China from AA minus to A plus. For the first time since 1999, S & P has reduced China’s rating. Its impact has been seen on other major Asian markets, which has led to a sluggishness in Asia today.
Among the Global Signals, there is weakness in Indian Stock market. At the moment, the Sensex is trading down near 400 points and the Nifty is trading more than 150 points. In today’s business, there are weaknesses in all important indexes except IT and pharma stocks.
Option Nifty Calls : Buy Nifty 10400 put above 393 targets 408, 423 Stop loss 373.