Money Tree

Again, the asian lot is down, US closed in red and sentiment at home is negative. We expect a major gap down opening and the crack might worsen during the day.

The expected recession in US economy and withdrawal of funds by institutions engaged in yen carry trade are weighing down on markets. Withdrawal of tax exemptions to Infrastructure sector and levy of additional excise duty on cement had already created a base for the concurrent down trend.

Go short in the morning and the NIFTY might not hold even 3600 and if it breaches this level, expect a free fall till 3550. However, the fundamentals of Indian economy are still intact and you may start cherry picking at around 3500 level. Large cap IT and telecom sectors can be picked up when they are hammered down.