In the last few days, the markets ignored all the negative news and even the insignificant positive news helped them stay higher. That phase seems to be getting over and now even the most insignificant negative news could turn the trend downwards. So far we were quite jubilant about the not so discouraging corporate advance tax numbers but it seems that we forgot to read the message of slowing down from them.

However, there are still some positive actions lined up like stimulus package, fuel price cut and interest rate cut etc that could keep us buoyant in short to medium term. But the long term picture is being projected as more serious for the U.S. housing, employment and consumer spending over the next couple of years. Similar is the condition of Europe over the next couple of years. The given scenario can not keep us unaffected for too long.

The technical short term outlook given in the post below is still relevant. Trade accordingly.