More downside expected

Sensex had taken 21 months to touch the 20,000 level from the 10,000 level. It took only nine months after hitting its all-time peak of 21,206.77 on January 10, 2008 to dip below 10,000 to touch more than 2 years old low.

Sensex dipped 5.25% or 552.5 points to close at to 9,975.35 and NSE Nifty plunged 205.6 points, or 6.27%, to 3,074.35.

US $ to Rs is now around 48.70

Crude Oil is now around $70 per barrel.

Inflation numbers at11.44% from the last weeks 11.8%

Over the last 5 days, FII's & Domestic MF have sold over 5042Cr and 242 Cr respectively.

RBI did another CRR (Cash Reserve Ratio) cut by 100bps to 6.5% from the current 7.5% and Finance Minister tried to console the investors by his speeches almost everyday. Unfortunately all went in vain. Fundamentals and Technicals are totally ignored for a while and Sentiments are completely beaten down due to US recession and global meltdown.

Q2 September results are showing weakness and being declared with a cautious future guidance.

Market is yet to reach its bottom. There could be minor bounce backs and one should not get into its trap. There is a good possibility that we might see 9100 in Sensex and 2800 in Nifty i.e another 5% from here in the coming week.

More downside expected!

Happy Trading!

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