Bleak outlook for Indian markets as Asia falters

The outlook doesn’t look the least encouraging for Indian markets with Asian stocks falling for a fourth day after the US financial rescue plan was stalled and Washington Mutual became the nation's biggest bank failure.

MSCI Asia Pacific Index was 0.2 percent lower, Japan's Nikkei 225 Stock Average lost 0.2 per cent, Topix was down 0.76 per cent, Hang Seng lost 1.84 per cent and Strait Times fell 1.38 per cent. In New Zealand, NZX 50 Index was down 0.4 per cent.

Nifty has made a double bottom at 4091. The V-bottom reversal is notoriously unreliable. It recovered from the day's low of 4077.5 but profit booking in late trade dragged it lower. The premium in October futures indicates positive outlook but options data is contradicting, which signals players are not confident. I will advise players to remain light till the market unveils the exact direction