WEDNESDAY 17SEP 2008

There could be some short term recovery in the world markets today.
All the markets appear as if driven by day traders where central banks keep fueling enthusiastically because of election pressures. But fundamentally, the fall out has long lasting and negative after-effects on the economy. Credit crisis, unemployment and inflation would be the cause of concern. Emerging economies would have to wait little more before the FII's return to invest.

Technically, all the major markets including ours have breached their crucial supports. This implies that they have limited upside now as they struggle with new resistances. So, it will be more of a traders' markets -selling at upper range while buying at lower range. Medium to Long term Investors could stay out for the moment because it is not the fear but a certainty of impending financial crisis.

Near term trend as well as Medium term trend have turned downwards.
In the short term Nifty has now a new major resistance at 4300 and that too if the resistances below this at 4165 and 4250 are surpassed easily.

No trading ideas until the air of confusion gets satisfactorily cleared.
Our next trigger for short term would be inflation figures tomorrow.