FKLI Trading 9th October 2009

Index futures continued its fourth day of gains on cash-led futures-buying momentum to hit another record high for this year. Against a positive ambience from abroad as Wall Street pointed to a higher start after Alcoa Inc. posted better-than-expected earnings, thus giving hope for a strong third quarter earnings season, index futures advanced 1.5 points at the opening print. Trading was lackluster in the morning but the momentum picked up later with shortcovering activity leading the market higher. By the close, October contract surged 10.5 index points to settle marginally off day's high at 1234. With market having traced out higher lows and higher highs in recent days coupled with DJIA overnight surge, futures market has the propensity to encourage further advance towards 1244 with further upside potential hinged on follow-through buying in the cash market. Profit taking selling ahead of the weekend should see
downside support near 1226 level.