Market Overview - CashTheChaos

Daily Outlook for Feb-12-2008

Nifty

NSE Nifty(4857):Markets have been taking it on their chin over the last few weeks and yesterday was no exception with Nifty plummeting over 5%. The close has put the Indian markets below the lowest close of January and below the much tracked 200 day moving average. The fact that markets have ended below the 200DMA is not as significant as the fact that it has closed below the 200DMA after a rally attempt. Are the Indian markets staring into the abyss? May be but it clearly seems to be placed on top of a pin head. Die hard bulls will be hoping for a successful retest of the lows of the January and basing formation. Traders should keep a lot of patience and little of risk and then market will present itself with opportunities. The supports for the Nifty are at 4770, 4720 & 4448 and resistance are projected at 5000 and 5191.

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