Nifty has broken crucial supports in last few days. Now the next support levels are at 3880 which is basically the support of the next trend line. If that holds and market consolidates around it then we can expect pull back in coming weeks. If that is broken then further fall upto 3831 and 3640 would be possible. If all these levels are broken further due to the global economic condition then we would see 2900 this year.
Now 2900 is a possibility which is not ruled out. It may or may not be seen. Longs can be initiate if market closes above 4400 for 2-3 days or if 3880 is tested and sustains above that 3930.
Stocks wise alot of mid caps would show good results and may see good movement. Many such stocks have consolidated in last few days giving positive indications. It would be safe to take positions on break outs in small quantities.
On the other hand Fed needs to increase rates if they want to control crude prices and inflation. It is also possible that they would not since they have some indirect interest in crude. If rates are increased then money would flow out from crude and get into equity market giving a good relief globally.
we can expect any such relief from US or from Indian government in terms of any economic policy after the 15th of July.
