Title of our yesterday’s notes best defines whatever that has happened yesterday. In line with our expectation nifty broke 3800 level comfortably in the huge gap down opening. During the downward momentum move, nifty took support near the mentioned level of 3648 and gave a brief pull up. Breaking all the support levels nifty entered sub 3600 level and closed above 3600 at 3602.
US market closed very weak on Monday with Dow closed below the important psychological level of 10000. In the last hour there was strong pull back in the US market indices to close around 3-4% down. Following the weak US market, Asian market also opened and trading very weak. Nifty is expected to open weak with mild gap down.
Yesterday also nifty heavy weight champion Reliance been hammered heavily which has damaged the sentiment among the investors. On the lower side nifty may find support near 3555, 3539 or 3476 levels. Similarly on the upper side resistance exists near 3707 or 3813 levels. For any significant change in trend direction, nifty has to close above 3970. Hope nifty does not break March 2007 low of 3555. On the back drop of RBI announcement to cut CRR by 50 points to 8.5% with effect from 11 Oct. 08 which is believed to increase the liquidity by 20000 crores and SEBI’s action with P-Notes, let us see how it impacts the melting down market.
SUN OUTAGE: Between 24th Sep.’08 to 8th Oct’08 market will remain closed between 11 25 hrs to 12 10 hrs due to sun outage and market will close at 16 15 hrs instead of 15 30 hrs.
Happy Trading !
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