The Madoff hedge fund loss of $50bn is getting factored in, and the world markets are almost flat at the moment. Otherwise, all other bad news is already discounted and the auto bail out seems to be on the cards soon. Therefore, there isn't enough reason to start falling from the current levels, except that the sentiment is somewhat neutral at the moment.

If the advance tax numbers of Indian corporate is any indication, we haven't been impacted much by the recession so far. But the times ahead are of volatility next earnings season(3rd quarter).

If NIFTY gives a close above 3040 within a couple of sessions then expect further rise towards 3100 to 3400 in the days ahead. The outlook and levels discussed in yesterday's post below is relevant. Trade accordingly.