A lot of shorts have already covered with almost 220 point Nifty rally in 2 days. All the good parts of budget (if there were any) are already priced in by the markets. I believe that Nifty may test 5600 and then retrace to 5150.
This budget is a brand new ponzi scheme painted in optimistic sugar coated words and nothing more. After Telecom scam, Adarsh scam, commonwealth games scam, bribe for loan scam, we have a new scam: Ponzi budget scam. Major expenses like oil subsidy etc are not accounted for completely in the budget.
What is the use of a budget when you are not willing to account for the expenses?
Our country is running on auto-pilot and effectively there is no government in the center in Delhi. Anyone including the FIIs are aware of this and hence no one want to put fresh money in this country.
If the crude went to $140, as is predicted by some analysts, then we will go back to 3600 or even 3150 on Nifty in no time.
Too bad that long dated options are not traded regularly on NSE or else December, 2011 NIFTY 4000 put would have been a great investment.
Short selling derivatives - Possible in Indian markets?