<b>Pre-mkt:</b> Crucial day for Nifty

The US and the emerging markets reacted negatively to the Fed decision to cut interest rates by 25 basis points. The Fed statement was more downbeat about the outlook for growth. The statement repeated that "some inflation risks remain."

The way US markets tanked overnight, one wonders how Indian markets will respond to that correction. The first reaction to the Indian markets would be gap-down opening. The markets players, however believes that there would not be much downside for the Indian markets as yesterday's rally discounted the 25 basis points cut. There would have been gap-up opening if the Fed rate cut had been 50 basis points.

However, analyst expects that bulls will get tested today. According to Deepak Singh, editor State of the Markets, today one needs to see whether Nifty sustains 6000-6020 on closing basis or not, because if it does not, then the pattern will qualify as false breakout - extremely bearish sign. The buyers need to come at lower levels (6000-6020) to support this market.