INDEX OUTLOOK 20OCT TO 24OCT 2008

For Long Term Investors: The need of the hour is not to rely more on the TECHNICAL but on FUNDAMENTAL analysis, because many scrips have breached their long term supports or are likely to do so if sentiment remains negative. A recovery from below crucial support levels could take more than expected time quite often.

For Short Term Traders: The consensus is on a relief rally on the basis of technical indicators and the oscillators in oversold zone but... markets normally do not move according to the consensus! It can remain in the oversold zone for weeks together. So, go for NIFTY OPTIONS in November and December series, if you must and only if you are familiar with derivatives. High volatility could bring good gains for savvy options traders in such market conditions.

Also, please keep a watch on updates from time to time, if any!

WEEKLY OUTLOOK FOR NIFTY (BSE SENSEX)

3525(11560): A close above here is needed to turn the sentiment positive for short term.
3420(10895): Inability to close above this level would pull the index down again.

3074(9975): Current levels. Markets halting at or near its support is not a positive signal. Yet, a rise above here early next week could be a good omen for near term.

2940(9700): Markets could touch these levels soon.
2850(9400): An attempt could be made around this level to build a trough in this area.
2600(8800): Negative sentiment can bring down the markets to this level as well.
Though seems unlikely in the short term, a close below here would require review, particularly of the time scale for this bear market.