Nifty slipped down due to selling pressure at higher levels and in the medium term (end of December) it is expected to trade till 5300 and it seems to be a sell on rise market till now. Though it the index is maintaining a tight range one could see that major large cap names are moving down the trading channel and it would present a worrisome picture for all the traders. Though it can be considered as a normal bull market correction till the market settles down there is no logic in catching a falling knife. I expect the range bound to negative bias to continue till 20-21 of December 2012 and the market would start climbing up after that. Thus let nifty complete the price or time correction first and then be a buyer in midcap and large cap names.In the metal sector too we could see some major correction in stocks like JSW steel and TATA steel and Jsw will have a much lower target close to 670 as the distribution is happening after a long time. Volatility data is showing that long positions are not able to sustain beyond 5600 and they are getting squared off at higher levels. Turnover data is showing that institutions have not started selling in midcap stocks and only the largecap names are sliding and the implication could one more round of selling can emerge at bounce back.
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