NIFTY(BSE SENSEX) closing above 2940(9700) is a good sign for near term. If it manages to maintain above here then it would be a medium term base for these markets. But negative cues from Asian markets is not a help and the western economies are showing signs of further deterioration in spite of prices falling to mouth watering levels.

Reliance industries gave better than expected results but its closing firmly below its crucial long term support of 1248 yesterday is not a good sign. Unitech is also expected to slip into the oblivion after having closed below its very crucial support besides some bad news emerging about it after the market closing. The only hope remains about falling inflation and expected reduction of fuel price but that too could give only a short term bounce.

To sum it up, there could be some dead cat bounce or relief rallies in between but the picture is not very optimistic. Moreover, the government agencies' effort to bring stability by banning short selling would add to the woes, if done so! Their actions do not help in real price discovery as the water gets muddied and fishing becomes difficult. Ban on short selling removes those cushions which help to hold the falling markets. This action would only help the insiders/corporates.

In the event of deep cuts or any bounce, look for opportunities in SBI, INFOSYS and NIFTY FUTURES(Call options) for long positions as per the trading tips. RELINFRA is also looking good and it has call options of strike 600 and 700 in November series.

As said in the Wednesday's post below, the expected range for BSE SENSEX in the next 9 to 12 months is 6000-9000-12000-15000.

The Weekly outlook is always relevant until the outer levels are breached. Keep checking up with that from time to time.