Global equity markets continued to tumble with yesterday's show extremely volatile on the wall street with Bears hitting the winning runs. Indian markets tanked big time yesterday and infact D-Street lost more than any other Asian market yesterday. At the time of writing asian markets are trading mixed.
We expect minor recovery in Indian markets today. With Nifty breaking the 200 DMA traders jumped to the other side of the boat going short on Nifty. Open Interest increased massively. Any small positive trigger during this period might trigger a mamouth rally but all odds favour bears for the time being. We expect 4800 to hold on at any cost. But given the vigourous bear attack one should even wait whether the support holds before jumping in.
Stay away from equities at least for the next fortnight. Midcap bloodbath is yet to begin. Visitors of this column might have witnessed our bearish take from the last one month. We have confidently written this time "Sell in May" will work. High beta stocks like Aban got a stick though the Oil spil is used as an excuse.
It is time to pool Mr.Cash and wait for the right oppurtunity