``So will things improve from here on or are we headed for lower levels on the key indices?
It`s a tough call to make having seen the deep cuts of August. Markets are waiting with
bated breadth as to what Bernanke will say at Friday`s Jackson Hole meet. The short-term
outlook continues to be murky owing to a multitude of problems - both domestic as well as
overseas. Plus, we have to contend with the ongoing political stalemate over the Lokpal
Bill. Don`t get trapped in any relief rally as the sentiment remains precarious.``
``Nifty has tested the lower support level of 4,720-4,700. The intermediate term trend
continues to be bearish. Whether this level will be breeched is still to be seen but the
uncertain local as well as global developments continue to cast a shadow on the stock
market. FOMC meeting on QE3 is due tonight and its outcome is likely to influence the market
trend in short term.``
``A much awaited event today is the Fed Chairman, Bernanke`s speech on the US economy. The
meeting has been much anticipated as in the previous year Mr. Bernanke had launched the QE2
programme from the same venue. Economic recovery has still remained soft, thereby triggering
expectations of another stimulus package in the form of QE3. As far as today`s selloff is
concerned, it is likely that market participants may have decided to reduce their positions
ahead of this event. On the domestic front, the government’s entire focus is on the Lokpal
bill. Markets are equally concerned over the developing political situation.
For the next week, Indian equities would take cues from the outcome of the Fed speech on
Friday. The deadlock between Govt. and Team Anna has also kept markets nervous. Any
resolution in on the political front could come as a respite for the markets.``
``The volatility in the Indian markets would continue to stay as inflation still remain high
and is even likely to surprise on a higher side and there is a fear that RBI would continue
with its monetary stance.``
``Nifty today came down heavily in the afternoon below the crucial levels of 4,786 and 4,766
due to lack of positive triggers and is looking at next support of 4,660 levels. It is
suspected that the investors, who have rolled over their long positions from August series
to September series might have exited the positions due to heavy sell off which has further
ignited the selling pressure. Lack of participation from FII and DII also kept the market
under nervous. The resistance is there at 4,850 and 4,915 levels and we may see markets
moving towards these levels if the Federal Reserve’s decision is favorable to the markets
and vice versa.``
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