TUESDAY 16SEP 2008

Nifty and Sensex have decisively closed below their supports at 4100 and 13700 respectively. Technically, even if the markets make an attempt to move higher but finally should slide lower to previous lows at 3800(12500) once again in days ahead. Today's market movements need to be watched so as to say something conclusively; particularly the DOW which has closed below its crucial level of 11000, and also see what comes out of the U.S. FED interest rate meet today.

There is lot of enthusiasm about some stocks that have corrected to the so called "attractive" buying levels; particularly Reliance, which had peaked at 3200 levels just nine months ago and now has come down to below 1900. "But" technically, its medium term outlook has turned weak and could now go down to even 1500 in medium term with some intermediate support at 1700 levels on its way down.

Therefore, we should be very careful in stock selection even if we are going to invest for long term. The itching hands of short term traders need to be controlled because the markets are at such levels that we should block the waves of greed rising within.

Mini Nifty(MINIFTY) has a lot size of 20 and margin requirement is about Rs.11000. It seems like a right kind of instrument for "compulsive" traders in F&O. It has adequate liquidity as well.

No calls for today!