Wall Street lost all the gains in the final hour of trade to end with losses, asian markets today are trading flat. Watching the tape of US Equities is giving a scary picture of things waiting to unfold in the next 1-2 months.
Yesterday's rebound in Nifty is very much in the expected lines. Today's F&O expiry is likely to close in a smoother fashion and we expect a less volatile flattish day. Options max pain is set at 5000 but it is highly unlikely that Nifty might close around that levels.
Nifty hitting lower highs and lower lows is a clear indication of the downward journey. We see an extremely bleak picture for the next 2 months. We are extremely bearish on the markets. Any rebound should be seen as a god's gift to exit the equity markets. This is not your regular correction phase. This is a crisis which will unfold in the next 2 months.
Bears will have the upper hand. Take a look at the support levels below