The so called ' dead cat bounce' is over and nifty is again on its way back to form its final wave count close to 4950 levels. If we take the whole rally from 4530-5630 it will retrace 61.8% of the move around 4950 and if we take the final wave counts from 5350 levels it should stop around 4910 levels. Thus these are the levels to take off money from the short positions and get out of the market. As we all know below 5000 the whole trading community will turn bearish and this is the time to make some smart moves.Volatility index is again showing an uptick indicating every rise in nifty is getting sold off. If the downward momentum strengthens we could see panic bottoms for many stocks and pick some stocks at these bottoms where many traders would not do anything. As of now i would stay with BHEL and expect an interim bottom around 190-195 levels,would like to accumulate other stocks at different levels of nifty purely from an investment perspective. When the whole world is turning bearish at one point of time there would not be any sellers in the system , thus logically these are the times to be really wise and make use of your intelligence to make the right move. Don't be in a hurry to grab all the stocks , be patient and make sure that you are selecting the right stock and do it as a step by step process (remember wealth creation does not happen in a day , it can take long time).As a nifty trader the coming days are to exit my short positions and get out of the market , you can wait for a panic bottom or the opening bell and it depends upon the experience of the trader. Lets keep a range of 4910 - 5050.
