Market Overview - CashTheChaos

Daily Outlook for Mar-19-2008

Nifty

NSE Nifty(4503.10):Markets managed to hold the 2008 low on the Nifty and attempted a recovery. Although the markets did pare much of its gains at close, the fact that there was not follow through selling yesterday after such a strong down day, makes us wonder if the downward momentum has started to wane. It is too early to comment whether a bottom is in but with the US markets rallying overnight, it may be reasonable to expect atleast a meaningful counter trend move over the next few sessions. The support for the Nifty are at 4448 & 4332 and resistance is projected at 4770.

Since US markets have been setting the tone for rest of the world in the last several weeks, we did take a look at the market internals beyond the Dow Industrials. Without taking into account yesterday's rally, the internals here too is pointing to some slow down in the downward momentum. Hence, it would be advisable to stay with bearish camp but with a foot near the door. If technical evidence warrants, we should be ready to run to the other side of the camp.

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