In the previous post i had mentioned about a very much possible correction of U S market in the immediate short term and finally S&P is breaking down the trend line a correction close to 1620 can be expected in the short and as it is a news based and if the crisis is worsening we need to be careful about the immediate danger. It will be a wait and watch week for nifty and we are yet to see how nifty will react to the bad news in the world markets. It might give nifty some time to shed the heavy premium and stocks would turn to be attractive at lower levels. The volatility index is expected to rise further and if we only take nifty it would be a positive sign as we could see 27-28 levels in India VIX close to 6000 levels in nifty. The consolidation phase in EURO/USD and the last wave upmove in USD/INR can give a halt to the current upmove atleast in the short term.
