INR hits a new low.

A scramble for dollars saw the rupee slump to an all-time low of 53.35 to the dollar today. The interest rate was raised 13 times in the last 20 months, steepest hike in the whole world, to control inflation which has been above 9% throughout the year. Given the way policy makers are behaving and the large current account and fiscal deficits, India seems to be heading for the worst  financial crisis in decades. Sharp devaluation, as sharp as that of 1991, seems to become a reality soon.

The Eurozone crisis.

The ECB and Germany are both bent on austerity measures where as the root of the crisis lies in the balance of payments crisis in the Eurozone. No matter what formula the two may workout the financial crisis will only worsen till the ECB and Germany cast aside their proclivity towards austerity drives and recognise and address the balance of payments crisis. Hope Germany wakes up and casts aside it's moralizing dictum before it's too late.

S&P CNX Nifty for the week 12th December 2011 to 16th December 2011.

Nifty ended the week on a bearish note. However, if the nifty trades above the 4935 mark in the opening trades, a technical bounce back may see it go up to 5000 which if conclusively conquered may see another bout of short covering taking it to 5109 and beyond. However, on the downside if 4814 is breached conclusively then all short term longs may be exited. The support thereafter lies at 4756 and then at 4675.

S&P CNX Nifty for the week 5th December 2011 to 9th December 2011.

                      The market closed on a  bullish note at 5050.15 last week. If the Nifty trades consistently above the 5110 mark with good volumes, a short term uptrend can not be ruled out in the immediate term which may take it to 5170 and then to 5296 levels. Support lies at 4900. Traders are advised to trade long with strict stop loss at 4800. Profits may be booked partially above 5100 levels. It may be kept in mind that next week is a truncated week on account of holiday on 6th December2011.     

S&P CNX Nifty for the week 28 November 2011 to 2 December 2011.

The market closed last week on a very bearish note at 4710.05. If the market fails to trade above the 4750 mark in the opening moves, then the market will continue to be weak and continued trading  below 4690 mark will signify further weakness which might take it to 4515 levels and even down to 4432 levels. However, if 4432 too is broken then an all out carnage may take it to 3980.

S&P CNX Nifty for the week 21 November 2011 to 25 November 2011.

4843 continues to be the crucial support for S&PCNX Nifty and if broken conclusively next week, the market may see further erosion down to 4720 and then 4538. These are excellent times for medium time investors to go for staggered accumulation at best possible bargains. Bouts of discount sales will keep on coming up as hedge funds and some banks and nations go burst.

Ideas for you.

If you are not a compulsive investor, try investing in metals and top notch banks, for these are the ones that drive the economy and therefore stock markets. Other sectors follow. How long the wait`s gonna be, no one knows. But these are the ones that`ll lead once the players think the risk is neutralized. If you are not a compulsive investor, try bidding at the best possible bargains for these are the times.