That sinking feeling

Markets will nosedive early morning in tune with weak international cues. Markets are threatening to close below 4150 support level. A decisive close below this level can spell danger as we have been highlighting in this space.

The economic data have shown that US economy is still reeling and coupled with correction in commodities has resulted in a correction in US markets. The quarterly earnings seasons starts across the globe and the fears investors has is that the numbers may not be able to justify the stupendous rally in stock prices since March.

Below 14000(4150), the support for the index comes in at 13550(4113). All long derivatives bets should be off below 4150