We feel the markets could test the recent lows,

You must be disappointed, If you thought the 1,000-point rise of the Bombay Stock Exchange Sensex between last Friday and Monday was a sign of better things to come.After a flat Tuesday index showed no signs of a weakness. Sensex losing over 1,000 points over the two days, is it a a wake-up call?

The effects of US Federal Reserve chairman Ben Bernanke’s interest rate cuts, intended to lend a helping hand to the faltering economy there, have also proved short-lived.

On Thursday, it closed at 17,526.93 points, a loss of 1,136 points, or 6%, from its close on Tuesday. Global markets have been reeling under the fears of an impending US recession for some time now. Though the benchmark index in the US, the Dow Jones Industrial Average, has come off its 52-week low touched on January 22, it still trades in an uncertain zone.

Experts here don’t expect things to look up soon either. “We feel the markets could test the recent lows,” said Sandeep Wagle, chief technical analyst at Angel Broking. The recent low on the Sensex was 15,332, made on January 22.