Nifty closed below the Long term trend line

Gold prices hit the 1000$/oz mark. Crude prices have hit the all time high of 111$. US governance hinted that there could be halt in the written downs of the losses incurred due to subprime crisises. Us markets closed in positive, marginally. Us employment data shows no change at 3.53 lakhs.
Yesterdays fall was due to melt down in the international markets and the week IIP data announced a day before.
I have clearly mentioned on wednesday that the formation of the Nifty chart clearly indicates that the Bulls have lost control over the markets and surrendered in front of the bears. You can clearly see the Nifty plunging down to 4580 from the open of 4868.7. I have mentioned that the Nifty support is at 4650-4620. Close below 4620 can pull Nifty down to 4450. It tried to settle down near 4650, there were tremendous short covering at those levels. I had given a buy call call on Nifty future with a strict SL of 4620 in Spot Nifty. But the market plunged again, due to the week opening of the Asian markets. Yesterday nifty made a new low of 4580 since23rd Jan . Sensex made a new low of as compared to the January fall. But in the closing hours we saw very smart recovery in Nifty future and the Nifty closed above the 4620 levels.
One more thing i have mentioned that the lower top and lower bottom formation in the Nifty chart is a point to be worried about. Yesterday the Nifty made a lower bottom at . The present trend shows weekness. View is still bearish, but the clear trend will be decided within a day or so. NIfty close is below my long term trendline.
In the previous blogs i have clearly mentioned that investors should stay away from the banking & Real Estate sector. These sectors will be badly hurt when the markets come down. There could be some more losses to our banks also due to the subprime. High interest cost and high real estate prices have lead to decrease in the demand for real estate. The real estate prices have increased 3 folds as compared to the increase in income of individual.
This week Inflation will be high as compared to last week.
There has been a tremendous increase in the OI in Nifty4500-4600 puts. There is good short built up yesterday. Till the time the shorts are not covered the markets are tend to be week. Nifty will take a good support at 4600 levels. Traders can take a risk buy buying with the SL of 4600 nifty spot. The close will not be below 4620. Nifty has a rest at 4700-4750. buy RPL, RELIANCE, ICICI BANK FOR SHORT TERM...