It's been a long wait for the Bears to get the control of the markets. Since the start of the week, Sensex lost almost 750 points from the yesterdays high. Nifty made a low of 4786 and closed marginally above the 4800 mark. Nifty closed down 2.78% or 137 points at 4806. Sensex sinked more than 500 points but recovered marginally in the end. Since the close below the 200DMA, Nifty seems to have a very bad time. Nifty faced resistance at 4950 levels, crossover of the level triggered heavy selling in the markets. With the expiry date nearing the volatility in the markets was at top. Yesterday Sensex fell from the high of almost 300 points slipped down 700 points till today. FII's remained net seller. The selling continued since the start of the month. FII have sold almost Rs.10K Cr of stocks till date. DII's on the other hand has been net buyers, but the question is "TILL WHEN they could buy". Are our Domestic funds sitiing on cash, that could be pumped in the markets during the FII sell off. Its not only the Indian markets who are feeling the heat. Its a Global Sell off. European markets were down more then 3%. Dow futures were down 150 points post lunch session. As mentioned in my earlier articles also, the Euro problems wont be solved out with few bn dollars. They need really BIG money for the bailout. Investors are adviced to wait for the markets to settle. Nifty close below the 4800 levels might see some the level of 4780- 4692.
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