Bears are back. But panic selling seen earlier might be missing this time. Nifty faltered again at 5200 levels. Support of 5136 is holding from a big fall.
US Markets sold of in the last 2 hours after managing to stay flat for majority part of the session. Retail numbers were blamed for the fall. It is indeed interesting to note from the last 5 months upmoves in the US Markets are followed by low volumes where as the downdrives are accomopanied with massive volumes.
Indian midcaps are staying afloat, courtesy liquidity flows. We clearly mentioned many times in this column that most of the feelers indicate major FIIs were short in Nifty this month but midcaps continue to survive. We expect gush of selling in midcaps soon.
Euro is looking weak every passing day and is likely to continue the same for few more months. Gold is making new highs while Crude Oil continues to drop. We believe worst is yet to come for equities and this time there will not be a storm but a smooth fall