Ouch.....its pinching everywhere!

Since I wrote last, there has been a nervous slowdown in the markets all over with the Dow itself going down by a whopping 257 points in one day last friday. This was followed up by a nervous show by most markets yesterday. The Dow itself, when it opened yesterday after the weekend, was unsure of its next move. It went up a little initially, only to settle back in the red just by a trickle, suggesting the nervous uncertainity in the market and the wariness for further bad news if any, to come. The Bank stocks were patircularily down a few notches. they have been so in fact throughout this past week. The main contributors for their bad show would have to be put on not only the sentiments that the market is carrying, but also due to some reasons that have come to stay in the last year or so.....credit squeeze, High cost of funds, dwindling spreads....Not a healthy picture at all. That valuations have come down drastically in the past year is of grave concern. Ouch.....its pinching everywhere!

Coming to the Indian markets, even though it showed a positive swing on friday, expect it to go down today in the light of the Dow meltdown, although not by much. The major Asian markets are up today after a dull day yesterday and it should rub off on us. The net effect thus should be in the range of a downslide in the range of 150-300 points. The market should be seeing the levels in the range of 15,500 during the day before settling down near the 15,650 mark. This, provided the European markets are in the same near neutral gear as the Dow was yesterday. Else the 15,200 mark may also not be a safe bet today.

Eventually.....I stick to my 13,400-13,800 levels to be reached in the coming months although the 14,000 might be a tough psychological barrier to break.