Leadership
is in short supply. Whether it is about tackling corruption and
inflation in India, or fiscal troubles in the West, policymakers are
increasingly facing a market backlash. In short there appears to be a
crisis of confidence on every Street.
Forecast
for global growth, including that of India and China are being scaled
down to take into account ongoing economic problems. Even at relatively
lower levels, risk appetite is lacking; safety remains the primary
motive. This trend is unlikely to reverse in a hurry.
Equity
indices will tumble at start today, tracking the worldwide slaughter.
Volatility has soared and may stay elevated. Those who swear by
long-term investing and have the money could do some small purchases.
The rest can wait and watch for some confidence that we are not heading
into a bear market.
The
38.2% retracement support of the Nifty - from the lows of 2008 to 2010
highs –is at 4800. So, there is a chance of a bounce back from that
level. However, one must remain extra careful as these are rough times
for global markets.
