Asian markets are down over 3%, compared to which Indian markets do not look so bad, says Ashwani Gujral, technical analyst, on CNBC-TV18. This shows the market strength. Around 5500 looks like a levels from which the market can bounce back to go up to 5700-5750, he adds. So long positions can be opened in the morning with a stoploss of 5500, he suggests.

The US subprime problem is not over yet, says Manishi Raychaudhuri of UBS Securities, on CNBC-TV18. Last Fed minutes hinted that the recent rate cut may last for sometime, and it seems the emerging market liquidity is being hurt by the possible stalling of Fed rate cut, he explains. But the houseview is that the Fed might cut rates till mid-2008, he adds.

The market is still moving south, though at a slower pace now. The Sensex is currently trading at 18,383, down 519 points from the previous fall. Nifty is at 5494, down 108 points. Market breadth is extremely weak, with 121 advances against 870 declines on the NSE.