There is no let-up in the markets technical      set-up which is in a downward drift. The Nifty came once again close to test the crucial support level at 8500 on 2/11. Tomorrow's trading will decide if the mkt bounces back, once again, from 8500 and stays/closes > 8500 or plunges < 8500. If the latter happens, which is more likely given the trend of the market, be sure the "FEAR FACTOR" will set-in and take the Nifty down initially to 8400 & then 8350. The FII's, who are the movers & shakers of the market are in an unwinding mood & the tremors in NYSE will reverberate in BSE. The impact is already visible in front line stocks & it will percolate down & hit like an avalanche the mid & small cap stocks which are being supported by HNI's & MF's. Time to book profit (even a small loss), sit in cash & re-enter later. At the moment, it appears to me to be a correction in a bull rally and not a change in the primary trend of the market, which is still up. Even from a fundamental perspective, the market valuations are rich & Q2 results for front line companies are not earth shaking to warrant an upward spiral in prices.

Valued Contribution by Mr  G R Chari