US Markets lost all the opening gains only to close down with Dow losing 114 points. Asian markets started deep in the red today. While SGX Nifty Futures are no exception. At the time of writing SGX Nifty is down 80 points indicating another scary day in the Indian markets.
Euro is getting killed in the trading zone. And this is impacting the global economy with many fleeing to US Dollar as a safer instrument to park funds. Prices of commodities like Crude Oil and rest of the metal pack are falling like nine pins with the exception of Gold and Silver.
Indian economy we re-itereate has only one way to go and it is to the upside. But this temporary setback to the markets is just another huge buying oppurtunity.
How low we can go ??
Nifty moving down to 4850 looks inveitable in the next 30-45 days. Though 4950 acted as a big support level the last two times, the amount of short positions and global jitters might be enough to thrash the level of 4950.
If Nifty breaks 4800 then we are in for a bigger trouble we are expecting a huge sell off below 4800 which is tough to expect given the strength in the economy. One can start parking money in the market around 4800 levels.
But for now avoid Realty, Metals and especially junkie midcaps