10th aug 2007

so my apprehension as given on 08th august posting below came true "subprime worries to continue, if this was the primary reason for mkts correction, then it would resume again after few days." and today high flying indian mkts came down due to bnp paribas europe hedge funds going bust news.

technically the reaction at 4530 was just near 161.8% ret level of recent fall and recent resistances and regarding wave todays high was about 70% of the total fall(in last years fall, the wave had retraced 70% and then continued downwards), todays close is just above support level of 4401.55 but since the bad news on sub-prime is continuing, we can expect 4367 followed by 4355 and 4340, any fall below 4323 it can test the previous low of 4267.

the rise was lacking conviction and was on short covering, the fall is on much higher volumes and shorts are back, so the outlook remains bearish going forward.