Well I am a bit late covering such an important event in the Indian share markets. But better late than never. Yesterday I posted an article just before the opening of the trade in the Indian markets warning of a huge fall. And the same thing happened moments later with sensex nosediving by over 951 points to close at 14.809 levels, well thats under the psychological barrier of that 15,000 mark. The nifty too closed 242 points down to settle at 4503 levels.

The markets are now trading below the 200 day moving average signaling a  clear bearish trend. The trigger came way back from US where the fifth largest Investment bank called Bear Stearns was taken over by JPMorgan for a mere $236 million at $2 per share. The company was sold at 1% of what its worth was 16 days back. The story is surely going down in the pages of history.

The Asian markets fell sharply and Indian markets reacted to the same piece of news and tumbled about 5.1% taking the  investors wealth to below Rs 50 trillion or Rs 500,00,00 crores. And as I mentioned in the yesterdays post ICICI ,HDFC and SBI were the biggest losers. The overall  market situation is very grim with dollar plunging against some of the major currencies of the world of the world. The crude oil prices touching $ 112/barrel limits. Gold prices crossing the $1000 mark. Subprime crisis unfolding in a big way resulting the current recession in USA.

So in one way or the other,Indian markets are not decoupled from its peers and US markets. Somehow at this stage it seems the technical analysis has no more significance. The share markets simply react to the triggers coming in from different sources. At this point of time small traders are advised to remain away from the markets. Meanwhile some analysts are of the view that markets are yet to bottom out and it could still go down to 14,500 levels.

Well today the markets closed almost flat with a meager  gain of 23 points in the sensex. And currently at 11.45 PM the US markets are trading up by over 1.5% and 2.1% respectively in Dow and Nasdaq. This is also a rally before the Fed rate cut announcement. Most likely the Fed will again reduce the interest rates to prevent further slump in its economy. And most probably the Asian markets and the Indian markets will open gape up and will be trading higher. Lets see how long this relief rally continues.

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