Nifty at 4000 levels and Sensex touching 13,000 levels just today after all the news from US economy, where are the Indian markets headed from here on. Well I feel extremely sorry as I have not been able to update the blog for some time. Anyways lets come to the point of discussion.

The crude oil is now trading sub $100/barrel and touched $99/barrel and Dollar has cracked to almost Rs 46 levels against Indian currency. The inflation for the last week was about 12.1% and IIP figures for the latest month was more than expected at 7.1%. But against the backdrop of all these developments, the markets have reacted badly to the news inflow from US economy which I will describe in detail in another post.

Now lets analyze the last week in the Indian markets and introspect and plan for the coming days. The sensex lost 483 points of 3.33% and nifty lost 2.85% over the entire week with 5 trading sessions. Sterlite Industries was down by 17% after the news of restructuring plans came in. Other losers included Reliance Infrastructure, Reliance Industries, Tata Power, JP Associate, DLF etc. The markets basically reacted to the hefty fall in the index heavy stocks like Reliance Industries which fell below the psychological Rs 2000 levels per share. And even though the Dollar is trading at Rs 45.80 already, the IT stocks have taken a beating.Infosy fall was also taken into consideration.

Short Term And Intermediate Trend For The Traders:

With the current levels of 13,000 levels and sub 4000 levels, the markets have already breached all the significant support levels of 4250 in nifty and then 4100 levels were also breached. Well the world markets have already entered an intermediate downtrend. Currently the Nasdaq futures were trading lower drastically which implies a significant fall in the US markets and Dow could touch lows of 11,000 levels and if it falls below 11,000 or 10,750-10,800 levels then get ready to see another blood bath in the street.So all these clearly imply its a global effect than a local one.
For trading perspective you can have a look at JP Associate, Punj Lloyd,Vishal Information,NTPC,BHEL,HDFC etc.

Long Term Trend For The General Investors And Stock Picks:

Now after these drastic fall in the market, now we the investors have a good chances of picking up frontline stocks at lower levels. If the markets come up to 15,580 levels which is the intermediate top only then a bull run will start or a rally could be seen. And a similar levels in nifty stands at 4,650 levels. Now we need to remain cautious of the July lows also in the downside because they are just a thousand points away. And in such volatility thats not a big problem. Some major stocks which can be considered are Reliance Industries, DLF, Infosys Technologies, ITC, Wipro, ICICI, BHEL, L&T,Reliance Power, JP Associate etc. It would be better to wait and watch till the markets stabilize and move in a narrow range. Only then we can see a rally coming the markets.

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