S&P CNX NIFTY closed down -180.250 at 3,338.400.  Volume was 11% above average (neutral) and Bollinger Bands were 74% wider than normal.

Technical Outlook

Short Term		Neutral
Intermediate Term		Bearish
Long Term		Bearish

Support < Support < [[Crucial]] > Resist > Resist
3,199.8665 < 3,269.1328 < [[ 3,393.8164 ]] > 3,463.0828 >  3,587.7664

	we would only look for a signal to sell.
	the momentum is downward.
	the downward momentum is slowing.
	This is an area to be cautious.  If you are short, consider protecting your profits.  If not in the market, be ready to sell lightly which must be confirmed by the

Bharat Mudgal’s Comments:

As expected, the day was quite negative. At the time of writing, the DOW JONES is down 501 points and NASDAQ is down 101 points which is quite a big fall as of now. The Reserve Bank of India announced a host of measures including a one percentage point reduction in Cash Reserve Ratio (CRR) to infuse more money into the liquidity-starved economy.CRR, the portion of deposits banks have to keep with RBI, has now been reduced from 7.5 per cent to 6.5 per cent. In addition to the CRR cut, RBI has also allowed a temporary relaxation in Statutory Liquidity Ratio (SLR) to the extent of 0.5 per cent of banks’ net time and demand liabilities. This flexibility was granted to enable banks to borrow the Rs 20,000 crore of additional facility, to on lend to mutual funds facing redemption pressures.

Moving ahead, the support exists at 3190. Now the interesting thing is that at the opening, the market will have to deal with the negative bias of heavily beaten up international markets and with the positive bias due to CRR cut.

Till such time the mood is not clear we will consider 3190 as a strong support and a break below this the support is only at 3040. On the upside, 3793 > 3936.