It came but a day later. Well I am talking about the huge fall in the Indian markets and about which I mentioned here in the last post. Before I start I wish all the readers of the blog a very happy and prosperous  Dussera. Lets hope we get to see something good from here on in the Indian share markets. But again that would a hope against hope.

The markets had opened on a very weak note on the last trading session yesterday and it was almost down by more than 700 points at one point in time to touch 10,750 levels and make new yearly lows. This figure reminds me of the most crucial support level in Dow which has been broken and since then we are witnessing a free fall in the markets in USA and world over.  Currently too the US markets are down by 1% to touch 9,160 levels in Dow.  The FED has cut interest rates once again and it was followed by banks world over.

UK has also announced a massive $850 billion dollar bailout to protect the financial sector from further plunging. Its really terrible to read news like that the investors had lost Rs 36,50,000 till now in the 9 months since the stock markets started its free fall from 21000 levels in sensex. Yesterday 17 out of 30 stocks in the sensex made their yearly lows which is again a record in itself.

People world over are still very suspicious about the development in the financial situation in USA and different parts of the world. The US dollar has also weakened to  a 6 year low and is currently trading at 48.74 against the dollar and analyst are expecting it to touch 50 level mark in another 2 months or so.Some how it seem we are constantly bombarded with bad news almost everyday now. It would be advised to be very cautious and remain away from the markets for a while. And when the recovery starts we can see good money coming from the markets as the stock valuations are now at dirt cheap levels.

10,000 will be a very crucial support level for in sensex. Some traders even feel we can see 3,000 levels in nifty. We need to wait and watch how the recovery goes on from here, else those levels may very well become a realty anytime. Really we have never seen such bad sentiments in the markets anytime.

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