Today,the bulls seem to have lost courage as bears put on their horror Halloween masks and scared the wits out of the bulls. Another rate hike by Australia; a big loss for UBS and a massive shake up of UK banks spooked sentiment globally. Warren Buffett's blockbuster deal for Burlington Northern Santa Fe could provide bulls some cheer. At the same time the latest chart patterns for the S&P 500 suggest that the uptrend may be running out of gas.
All eyes and ears will be on the tone of central banks in US, UK and EU. Most of them may refrain from action in terms of raising rates. Back home, the FM has reiterated that he is in no hurry to reverse the fiscal stimulus. Disinvestment would happen when the market offers the best possible value.
Technically though, the bulls could lose some more ground. On the downside, support may kick in at 4,450. On the way up, 4630-4650 could prove to be tricky levels to surpass. We expect a slight rebound at start followed by another choppy session.
