==>> Nifty major support at 3500 levels

In the US markets, the Dow Jones closed below the psychological 10000 mark for the first time in 4 years on fears that the credit crisis is spreading its tentacles across world markets. The index however pared its massive losses in the final hour of trade.
The Fed tried to ease Wall Street's pain by saying that the 28-day and 84-day cash loans being made available to banks will be boosted to $ 150 billion a piece, effective Monday. Also loans that will be made available in November to banks also will be increased to $ 150 billion each.
That makes a total of $ 900 billion in credit potentially outstanding over year end. But the US markets didn't find much respite and slumped.At closing bell, Dow Jones ends down 369 points, S&P 500 sheds 42 points and Nasdaq ends down 84 points.

The carnage is till not over. We can feel the heat globally. The German govt bailed out a big property lender. South Korea said it will dip its forex reserves to lend banks.Europeran stock markets tanked 7%, while among the Emerging mkts Russia suffered the most, falling 19%, Brazil & China tanked by 15% and 5% respectively.

Indian ADR's are also sharply down, Sterlite -17%, Satyam -14%, MTNL -13%, Tmotors & Hdfc Bk -9%.

Oil has breached 88$ per barrel, but the impact is not seen in the Indian markets as the Re is also slidding down. Re made a new low of Rs.48 as compared to 1$.

Cash Reserve Ration (CRR) has been cut by 50bps. That will release Rs.20000 in the system. The last time RBI cut CRR was way back in June 2003. The actual impact on liquidity will be negligible coz Rs.17000 crs. will be sucked out of the money markets by Friday courtesy govt bond autions.

Technical Speaking Nifty has a good support at 3500. Acc to the Fibonacci theory from the High of 6357 & a low of 4448, 3500 levels is the -50% retracement level. Nifty is also getting in to the over sold zone.