It opened with a gap and could not close the gap till the end of the day. Nifty has almost reached our downside target of 4800 as i said it is better to wait outside if you are index trader.As i said in the previous posts we could see short sellers getting enough opportunities for booking their short positions but the buyers are getting trapped at every level , let it be 4950 or 5000. Thus it would be interesting to see how nifty would behave when it is close to 4950 levels.In the stocks there would be some more downside if nifty cracks to 4700 levels.
Stocks like Indus ind bank and HDFC are at crucial levels and on a breakdown i could see 8-10 % cut from the current levels.As an investor it is better to do some shopping in stocks like Reliance at 630-640 levels on any panic selling days. Just add stocks in a systematic way so and Banking should be one sector that one should avoid at these levels. The worst is not behind us and it is yet to come , the volatility index is showing the amount of fear by rising close to 8%. It tells you uncertainty is here to continue as the rupee has also registered a new high. Lets keep a range of 4800 - 4910 and no need to create any short positions on the downside break out.
