Sell off has started once again

After breaking major resistance of 5175 (17300), Nifty went up to 5400 levels. That was a typical Bull Trap and as I mentioned in my earlier blog, that was the last chance to exit equity market. Since August 2011 Dollar has appreciated against Indian rupee by almost 18% and hence foreign investors had to exit from Indian equity markets. Once Nifty breaks 4667 (Sensex-15652) we will get confirmation for next round of sell off.


Since the sensex has started, whenever it has broken previous years’ low, it has corrected at least 15% from that low. Previous year’s low for Nifty is 4667(Sensex-15652). Once that low is broken we can expect at least 15% correction till 3960(Sensex-13300). So every bounce back is a shorting opportunity. Now 4940 is a major resistance, one can go short around that level with stop loss above 5080.

Following Sectors looking weak on Charts:


Capital Goods, Metals, Power, Real estate, Oil & Gas, Midcap and Small Cap

We may see profit booking in following sectors:

Consumer Durables, IT, Banking & Health Care

Following sectors will Out-perform the market:

FMCG & Auto

To conclude, every bounce back is selling opportunity. One can go short in Nifty around 4900-4940 with keeping stop loss above 5080 for the target of 4680, 4400, 4200 & finally 3800. PLEASE DON’T BUY ANY STOCK IN HURRY. Happy Trading!!!!!!!

Last chance to Exit from Equity market

I hope those who read my earlier blog must have booked the profits and parked their funds in Debt instruments where capital is safe. As I mentioned, Nifty came down by almost 1000 points and made a low of 5720 (Sensex – 15765). Nifty confirmed the down trend once it broke the major support of 5175 (17300). Now that support (5175) has become major resistance. Nifty tried to break the same twice but couldn’t succeed.


Today S&P CNX DEFTY (Nifty in terms of Dollar) has broken its previous low. Because of that FII sold the shares with volumes. Still we have not seen panic in the market but once Nifty breaks 4720; we may see a huge sell off in the market.

Till today FMCG sector has not given Sell but tomorrow we may see selloff in that sector too. If FMCG sector also becomes bearish that confirms down trade has started.
Sectors looking weak on charts:

Capital Goods, Metals, Oil & Gas, Power

Sectors may outperform the market:

IT, Pharma & FMCG

To conclude,  this is the last chance to exit from equity market, we may see a huge sell off and Nifty can go down to 4400, 4200 and then 3750. Happy Trading!!!!!!

Time to book profits from Equity market

After the rate hike from RBI, market has started going down once again. As I said in my earlier blog, it’s a time to book profits from Equity markets and park your funds in debt instruments where capital is safe. This week Sensex has broken a major support of 18975 (Corresponding levels in Nifty – 5700), now the first support will come around 17800 (5350).

If you have missed the train you will get a chance to ride the trend once again. Next week if sensex comes around 18800 (5600) then one can go short with a Stop loss above 19300(5750). As I mentioned in my previous blog , this C wave of A-B-C correction. A wave was 21200 to 7700, B wave was 7700 to 21108 and C wave has started now which may take sensex to 12500-13000.

As mentioned in the chart “e” wave has started and this wave can be a very destructive one. This wave can be 161.8% to 261.8% of “a” i.e. 16000 / 14200 or 100% of “c” i.e. 16300.

Following sectors looking weak

Real Estate, Telecom, Capital Goods, Power

We may see profit booking in following sectors

Metals , IT, Banking ( If Tata Steel goes below 575, it can go down to 500 in 10-15 days)

Following sectors may outperform broader market

Healthcare, FMCG, Auto

To conclude, book profits from equity market and park fund in debt instruments. One can go short in Nifty around 5600 with a Stop loss of 5750 for the target of 5200-4900. Happy Trading!!!!