Nifty could not hold 4900 levels and closed below that crucial support level.It tried to bounce back above 4900 but as i mentioned in yesterday's post every small bounce was met with huge amount of selling. It was very much visible that cash segment witnessed huge amount of liquidation at higher levels. Biggies like TATA motors and L&T slipped and we could infer that people just want to get out of the market and they are saving some amount of cash for bottom fishing. From the FII data it is evident they are looking at much lower levels to enter and 1300 cr selling in equity segment reveals that. As per time cycle 27-28 th would be the time for an interim bounce or bottom formation.If Nifty could successfully retest 4700 levels and come back it would be a good thing for the market , but the current scenario looks much dangerous.India VIX has risen to new highs and it reveals uncertainty prevails at higher levels and short build up on every rise.
Dollar is not in a mood to rest at 49 levels and all these factors turn out to be negative for the market.
