Technical outlook for 2009

Despite a gloomy macroeconomic environment, 2009 is unlikely to be as bad as the previous year.

After enjoying three years of nearly 35 per cent plus returns, investors burnt their fingers as the Nifty plunged over 50 per cent in 2008, making it one of the worst years in market history. The credit problem that engulfed western markets left its mark on the Indian bourses as well, as FIIs started pulling out of the markets here to bridge the liquidity shortfall back home. While the markets have recovered 36 per cent from the October lows of 2,252, chances of a sharp recovery on back of a sluggish economy are rather bleak

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