US Markets bounced off the support levels but it appears to be a fake bounce. We expect the support to be broken in the next 2-3 days with ease. Relentless selling is clearly witnessed on wall street from the last one month.
Indian markets are trying to exhibit brave face to the current crisis and afternoon session showed the vulnerabiolity of Indian market. We do not need to mention the volatility happenning from May. Traders have to time the market and it is almost impossible to track the trend on a daily basis. Small Investors would do well to stay away from the market. Though we hate to comment on other analysts one should be catious in listening to analysts who are trying to pump bullish blood.
Indian economy is undoubtedly the hottest economy on the planet and will continue to be so for the next 5 years but for the time being global sell off will have a ripple effect on Indian bourses. While the outcome of the current crisis is unknown, weak US economic data might halt the bull run for some more time. We are looking of period of consolidation after this leg of correction before a major take off.
Nifty is certainly looking weak and it is a matter of time it enters 4800 zone to test the resistance at 4800 levels. We are afraid 4800 might be tough to hold but 4650 is a bigger support level this time which is nearly a 7 pct fall from current levels