Tuesday, June 24, 2008

Nifty closed below 42k mark, where from here now?

Nifty today broke crucial levels of 42k mark and had faced wild volatile swings intraday. Due to high crude prices and higher inflation rates in india and investor sentiment is worsen.

Meanwhile markets today fell contineusly for the 5th day in a row and in last five days market had lost nearly 1500 points. Markets were trading in positive territory till afternoon but in afternoon europe started showing negative cues and that added fuel to the sentiment and ended in 187 points down to the sensex.

Every small and large investors are worried as market is making new lows everyday and bottom is yet to be discovered. Investor sentiment is in such a weak position that rumours like "sensex will reach 10k soon" started flowing into the markets as advised by sebi and other governing bodies investors shouldnt get panicked by such rumours.

Currently markets are threatened by higher oil prices and it seems market will get stability only when crude cools down a bit. But even after the king of saudi arabia announced production hike there seems no relaxation in crude market.