Indian market may continue its downward trend. Key support for the Nifty is around 3,450 levels. Also uncertainty over the outcome of elections would continue to keep the traders and investors on tenterhooks.
The recent bull dominance appears to be under temporary threat as players don’t want to take any chances ahead of the election results. Perhaps they are smarting from the May 2004 experience when the market had corrected after a surprise defeat for the NDA.
Traded volume was low on Monday and may remain so this week. Overall, the market will be choppy and rangebound.
Besides uncertainty over Government formation, one must also ponder over another big question i.e. how long will the new regime last? What’s worse, the long election process has left a sluggish economy without leadership at a critical juncture.
IIP for April and the FY09 will be out today and is not expected to show any big improvement.
