BOR: Market Outlook: Indian Markets to open gap down mirroring on global sell off

Market Outlook: Indian Markets to open gap down mirroring on global sell off as US Mkts crash on recession concerns and Asian trading weak; Shanghai Composite down 2%. Markets cracked as expected and there is no sign strength so far. There is a pressure due to unwinding of long positions, which were created ahead of the Interim Budget but sentiments changed hands. Large cap stocks have seen shorts across the board. The support for the Sensex is seen near 8951-8166 and the resistance to the up move is at 9262.

Nifty Outlook: Pivot Level: 2794

S1: 2733, S2: 2696, S3: 2636

R1: 2831, R2: 2891, R3: 2928

Indian ADRs: ICICI Bank down 14%, HDFC Bank down 8%, Satyam down 7%, Tata Motors up 2%, Tata Comm down 11%

On the global front: US markets tumbled to a three-month low, extending a global slump, as a record contraction in New York manufacturing spurred concern that the government's stimulus package won't be enough to curb the deepening recession. US Mkts crash on recession concerns; S&P ends below 800 and Asian trading weak; Shanghai Composite down 2%. The Dow Jones Industrial Average closed at 7,552.60, down 297.81 points, or 3.79%. The Nasdaq composite index fell 63.70 points, or 4.15%, to close at 1,470.66.

Gold jumped to more than 975 dollars an ounce, the highest price since July, on speculation that low interest rates and government spending will devalue currencies, boosting the appeal of precious metals as a store of value. Silver and platinum also rose.