Still far away but…….

The Indian markets were in deep trouble at the face of it. The Nifty was deep in red and far away from the near term support. The brutal damage was done from the heavy weights like RIL, RPL, ONGC, RCOM and reality & Infra majors like DLF, UNITECH, L T and Rel Infra apart from the metal sector as a lot. The banking sector stood against the onslaught of Bear hammering in spite of the global financial turmoil. The fresh short positions in the beaten down sectors will be very dangerous as they can get trapped easily.

Now the Nifty will get fresh lease of life only when it trades above 3350 and the first batch of strong resistance points starts from 3600-3620 level.
The RIL has to cross the resistance at 1550 and trade above 1420 at least for two trading days. The ONGC has to cross and trade above 850 level.
The reality sector majors except UNITECH are exhibiting some bargain hunting buying in DLF, IB Real estate and in GMR infra.

The long term buyers can start buying the blue chips irrespective of their price and the fear of loss. The Indian economy is continued to do well despite the global slow down. At this point it looks like the emerging new age world economy is shrugging off the traditional & old business icons and paving for a robust vibrant economy.