Market Overview - CashTheChaos

Daily Outlook for Nov-22-2007

Nifty

NSE Nifty(5561.05): Lack of support from the heavy weights at key support levels, sent the Indian indices reeling and markets finished the day deep in red. This close has put the markets below an intermediate term trendline and the likelihood of a secondary correction looks quite distinct. We have possibly rolled over into sell rallies mode. The support for the Nifty are at 5510-5475 and 5263 and resistance is at 5705.

Across the atlantic, the situation seems even worse, the Dow Jones has closed marginally below its primary support of 12800. The Dow transport had already gone below its primary support a couple of weeks back and FEDEX a main component of the transports has broken below its 2 year support level of $97. This could potentially mean that the bull market in the US is virtually over. Friday is going to be a pivotal day for the US markets as a close below 12800 on a weekly basis would add further weight to this evidence. Alternatley, if this is a bear trap we should see a sharp rally.

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