Mkts may witness sharp fall as global credit crisis worsens

Stocks are likely to witness a sharp fall on Thursday as fears that the global credit crisis could worsen further rattled investor confidence across the globe.

Wall Street tumbled to a three-year low on Wednesday as the Federal Reserve's rescue of insurer AIG failed to calm a crisis of confidence in global markets, leaving banks scared to lend to each other. Rattled investors worried about who could be the next victim of the global credit crisis, prompting them to dump financial shares across the board.

Unless 4220 points is not decisively crossed, the bear domination will continue. Resistance is shifted lower to 4315 points. Intraday pivot is at 4018 points which needs to be sustained for upside. Crucial support is at 3955, 3920 points. A breach of 3872 points would lead to further down slide but if it holds there could be an outright chance of a pullback. Resistance in any rise is at 4120 points. Those who wish to go long, should trade in options as the risk is quantified,