Aug 18,2008
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NIFTY closes at 4430.70. Sensex closes at 14724.18.

"A low below 4450 is imminent in short to medium term." A quote from friday post. As per our expectation NIFTY tested this level.

Short term chart is not encouraging. Friday's close ensures a dip near 4401. But the time factor remains unpredictable. Bearish momentum would help the market to move near 4240 support level.

But the asian markets bullishness may help it in short term. Good momentum would help Nifty to test 4660 to 4695 levels in medium term. Only consolation is - the long term chart has not turned bearish. If NIFTY's chart pattern turns bullish 5200+ will be the medium to long term target. But as of now it remains indecisive.

Crude's correction augurs well. Outstanding crude oil futures contact numbers fell to the lowest in 17 months in New York, as the Senate began considering legislation to limit speculation in oil markets. This is a good news.

According to fundamental analysis, excluding the effect of speculation, oil should be around $80 per barrel. Crude is technically weak as of now.