WEDNESDAY 08 OCT 2008

Technically, the DOW JONES(U.S.) and NIKKEI(JAPAN) have moved down far below their crucial support levels. Similarly, if FTSE(U.K.) also closes down below 4300 then the future for these large economies would be ominous.
India and China besides Hongkong seem to be holding their bastion so far. India does not turn overtly negative for long term until it is holding above 2900 levels. China also has better chances if it keeps holding 2000 to 1800 in the long term. Hangseng turns negative only on a close below 16000.

For today, if NIFTY(BSE SENSEX) close below 3450(11200) then another medium term target of 2900(9700) would come into the reckoning. So, what? We have come down from the peak at 6357(21214), approx 2800(10000) points cut in total. How does it matter if we go down another 500 points? But do not buy with borrowed money, i.e. do not leverage! Preferably, buy in cash market or buy calls only and avoid F&O for the time being. And also remember that it will take some time before we move above 4300(14200) to turn things positive for us. Even then we still remain in bear market for a longer time now.

Our holding above 3450 today would be a very postive sign for short term.
Tomorrow is a holiday. On Friday we have Infosys quarterly results.