Market Outlook for the Week:

On an absolute basis, on weekly chart, NIFTY lost significantly on the back of global sell-off. RBI’s rate cut, sharp fall in CRUDE failed to improve market sentiments. In fact inflation too came lower at 11.80% for the week ended 27th September 2008. On negative side IIP data for the month came lower at 1.3% against 10.9% in August 2007. As mentioned earlier current scenario by and large remains in favour of BEARS.

At current levels of NIFTY, it is down by 48% from its peak and 23% from its 20 week EMA thus making way for some short term bounce back. However any bounce back in near term could be used by players for unwinding. 14 week RSI show has slipped in extreme ''Oversold'' zone.

On daily closing basis resistance around levels of 3600 and then at 3800 will be crucial in case of an upmove while any move below levels of 3045 may trigger fresh sell off that may take indices lower towards level of 2800.

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