NIFTY on Make or Break today

The way markets collapsed during last hour of Wednesday, was like the days of bull market is over. Heavyweights Reliance Industries and Bharti Airtel and financials led the losses as foreign investors pared their exposure. Reliance Industries dropped 5.3 percent on market forecasts expecting RIL to post a drop in quarterly earnings on Thursday for the first time in three years due to lower refining margins. Both AIRTEL and RIL to release results today.

Nifty is place around the critical level of 2700 and thursday perhaps could be the make or break day. The low of last week for NIFTY was 2701 which NIFTY has breached on Wednesday and closed below it as per last trade of the day, which made NIFTY look highly vulnerable for bigger falls towards December lows of 2571 with in few days. Only a solid bounce on Thursday 22nd Jan 2009 can save NIFTY from utter disaster.

Last night Dow bounced up by 279 points to erase most of the losses of tuesday night, now as per daily technical indicators, there are indications that Dow may stage a good recovery in next few days. European Markets which had closed earlier were flat to fildly negative with FTSE closing by -0.8%. All european markets may bounce today at the back of strong US markets. Brazil was up by 3.4%, Russia was up by 3%.

After two days of falls asian markets have opened flat to mixed, may regain most of the losses of last 2 days as day progress.