Udayan's Outlook: Today's close to be crucial for mkts

The penultimate day before Diwali but the mood cannot be very festive. The global markets are selling off and we are at an extremely critical juncture for our markets.

Last few days have been so volatile the market has virtually had to run to standstill and now we get some volatile cues from the US markets and from the Asian markets.

Will we break importance support levels or will today at the end of it standout as a day of resilience were we started weak but ended reasonably strong.

Today is a test for the markets for sure; there is no other way to look at it.

Bad global cues:

It comes in a bad time because we have been so volatile and directionless that we have also been searching for triggers to lend the next direction to the market up or down and at this critical juncture poised close to support levels you get a bad cue from the global markets.

I think the bears will latch on to this cue with both hands and the bulls will feel quite miffed that the turn of the global events is gone against them.

I think today is an important day because today’s closing will be quite important. If the bulls managed to hold out today and come back in the second half of the day then I think people will generally get the sense that we are shrugging off negative cues and that 19,000 kind of level broadly is holding as a support.

We have seen many times in the past bad news has happened around important support levels and those levels have not broken.

I’m not saying that we are at one of those times now but I think today there will be a lot of defense around that 19,000 mark for the bulls and the bears will try to break it down to tip the market in the corrective way.

Today is important not so much of starting, which is the fate a comply. We will start weak but the closing today I think is more so because we are going into Diwali sentimentally and technically etc and I think today’s closing will be quite crucial.

Asian Indices:

It is not a pretty picture across Asia, the US pain is showing, Hang Seng is down 3%, Shanghai is down 2.5%, Nikkei is down 2.25%, Kospi is more than 2%, average cuts ranging from 2%-2.5% across Asian markets.