STOCK MARKET OUTLOOK

STOCK MARKET OUTLOOK

Global markets have gone into a tailspin with key indices tumbling like a pack of cards. Recession is the buzzword in market circles with all economic indicators pointing towards a sharp decline in growth. Even though there is a slump in commodity prices, it is not a big positive as the decline in prices is more an acknowledgment of harsh economic realities that led to a slowdown in demand. Inflation data that will be released today is likely to show a decline but global cues are so weak and this will cause Indian markets to open with a negative gap.

Today all focus is on Nifty as its going to break the 3000 mark first time after 25th of July, 2006.The global fall on signs of further slowdown after many companies reported bad earnings followed by the fear that some of the countries are going for big financial crisis may put downward pressure on our indices. The markets are expected to open with a sharp downward cut in the indices .The Critical support for Sensex may be around 9755 level and for Nifty it is 2970.The first support for Nifty is at 2930.The major support for Nifty is at 2860.

World Market Watch

The Dow Jones industrial average (INDU) lost 514 points, or 5.7% after having fallen as much as 698 points during the session. The Standard & Poor's 500 (SPX) index lost 6.1% and NASDAQ composite (COMP) lost 4.8% and closed at its lowest level since June 26, 2003. Crude oil is currently trading at $67.5 a barrel and Gold is at $725 an
ounce.
European shares slumped 5.4 percent, led by bank and energy stocks as investors added emerging markets ructions and waning commodity demand to their list of worries. Across Europe, Britain's FTSE and Germany's DAX lost 4.5 percent and France's CAC fell 5.1 percent.
Asian stocks slumped, as Japanese exports missed estimates and commodities prices tumbled, deepening concern the global economy is headed for a recession. Japan’s Nikkei 225 has slumped 5.52%, Hong Kong’s Hang Seng is down by 4.74% and China’s SSE Composite lost 2.79% in the morning trade.