It is a crisis of confidence which is going to stay here for quite some time. In the absence of clarity and new ideas, the markets with occasional bounces from support levels and short term rallies, could consolidate at current to lower levels in the days ahead as the crucial supports have been taken out.

BSE SENSEX closing below 8500 is a signal to remain cautious in the short to medium term. As mentioned in our stocksweekly, its 6000 level has come into the reckoning, more so if closes below 8500 on weekly basis.
The forthcoming data for this week from the U.S. would be the main trigger, which is likely to be more on the negative side. Otherwise also, there is very little chance of buying interest returning until the next earnings and the outcome of general elections' by mid May this spring.

On the NIFTY, look out for a short term bounce at 2500 levels.
The stocksweekly is still relevant. The point of emphasis is that there could be bounces from the supports from time to time but the markets are "sell on rise" until the resistances are blown off. Moreover, we are in a primary bear market, implying that the rallies are to be sold into.