Exit, Exit and Exit from Equity!!!!

As I mentioned in my previous blog, Nifty reached 5950. Now it can go up to 6200-6250 also but investor must use this rally to book profits & park their fund in long term debt instruments. From this monetary policy RBI may start cutting interest rates; so those who will hold long term debt instruments like Tax free Bonds or NCDs will get capital appreciation on their debt instruments. In my opinion RBI may cut Repo rate by 200 basis points in a year or two. So debt investors will get at least 15-20% appreciation over and above interest rate.


Now 5830 level is major support for Nifty. If Nifty breaks this level we must exit equity. Second level confirmation will come below 5555. As I said in my previous blog one big sell off is still pending in the market, so better we exit at this point. Now market will become very volatile. I think one should not carry any long position in futures.

Following sectors looking weak:


Capital Goods, Consumer Durables, FMCG, IT, Metals, Power & Real Estates

Following sectors outperform the market:

Banking, Oil & Gas, Healthcare & Auto

To conclude, one should short Nifty below 5830 for target of 5555-5400-5200, stop loss above 6300. Those who don’t want to take short position in market they can buy listed tax free bonds or NCDs. Happy Trading!!!!