Tuesday, April 21, 2009

Nifty to gap down today

US and European shares have fallen sharply after the biggest bank in the US reported a big increase in the amount it needed to cover bad debt.

http://news.bbc.co.uk/1/hi/business/8009280.stm

The news on the street is as follows:

The entire U.S. banking system is in a state of utter chaos! Among what we’re hearing:

16 of the biggest 19 banks are virtually insolvent


If just two of those banks go under, the FDIC is finished


The crisis is much bigger than anyone has admitted thus far — with upwards of $5 trillion at risk!

The recent rally in the Nifty may be just a bear rally and the momentum may change from today. Interesting times and high volatility ahead!

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