The inevitable…..

The Nifty is facing serious threat while moving up due to the US heading to deep recession that could not be saved with Obama package. The treat is that the IT outsourcing companies may face the difficulties as well the exporters.
The Nifty is down from a high of 2970 to 2757 in two days as it fell on 7th Jan from 3150 level 2750 in three days and that registered high was not crossed till date despite many global favourable news and rallies.

It seems that the US DOW likely to breach the Nov-lows but we may go close to 2500 level but the lows registered will not be breached so long we trade above 2550 level. The markets are weak to move but they are strong at the bottom as bottom fishing is seen in the heavy weights.

Today the Nifty has to cross the 2810 level in the intra day movement to exhibit its strength for future. The Nifty is weak below 2835 level and may get support first at 2685 level and next at 2650 level. The ONGC is good above 690 level and may get support at 650 level, it will become weak it breaches the immediate major support at 630-625 level. The Reliance has rallied from 1065 to 1405 lost nearly half to touch 1258 could get support first at 1236-39 level and the immediate good support seen at 1221-23 level. The ICICI is good above 389 and weak below 381 to touch 371 and 368 range from where the earlier move started. The Rel infra is good above 521-23 level weak below 511-09 to touch 493 and next at 486. The Relcap is weak below 386 level to touch the earlier support at 361-63 level.The issue of pledged shares demanding additional margin will effect the prices once the drop below by 20% to the recent supports.
The Asian markets are trading in red due to the spill over effect of US. The SGX-Nifty was down by nearly 33 points at 2723 level.