Our indices opened gap down on weak global cues on friday morning, and in the absence of any buying support, breached important level of 4800 on Nifty and 16000 on Sensex, effortlessly. The situation became worse with the release of inflation data showing more than 5% for the first time since a long time, and the opening of european markets in negative territory aggravated the selling in the last hour of trading, finally the indices closed below above important levels, confirming the grip of bears on the markets. Most of the index heavy weights have breached their 200DSMAs and are looking weak. US markets have closed in negative territory on friday, and asian markets are following suit.
This week is crucial for our markets, to see whether relief rally emerges with fund buying or weakness continues due to liquidity out flows on account of advance tax payment by corporates by 15.03.2008 & FOMC meeting scheduled on 18.03.2008 would influence the markets in general. India growth story is very much in tact, where as sentiment is very weak, as investors have lost money in 2008 already, so risk aversion continues till dust settles. REC shares will be listed on 12th on our bourses, and the behaviour of indices around 200DSMA, on any relief rally will confirm the on set of bear market, which may take 6 months to 18 months time for it to end. Thus, investors should remember that the days of easy money are over for the present, and it is traders market who have professional expertise, to move with the swings.
Range for the Day: Nifty might trade in the range of 4650 to 4950 for the day.
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