Nifty has closed below 4880, which is a major support. However, this could be a "traders remorse" and Nifty may bounce back a little (if at all). The chances of a bounce back are 50% or thereabout. However, do not consider this as the end of the down trend just yet.
In case the bounce back happens, Nifty may rise to 4960/5050/5120. But for me the chances of Nifty closing above 4950-5000 levels look remote. One must go short whenever Nifty attempts a bounce back. This is purely a traders market and retail investor must maintain distance.
On the lower side, Nifty may show levels of 4796/4747/4699/4600 in immediate foreseeable future.
The overall trend remains down for the medium term.
However, there is a silver lining to this down fall. As I had indicated for the first time in last week of September 2010 that it was a overbought market with Nifty PE trading above 23, I would like to mention now that we are entering a zone where Nifty (market) will become exceedingly oversold. Do not mistaken this for a BUY call though. Since, markets are mostly driven by sentiment and not logic, it is best to wait for some lower levels before you start buying.
The only thing I can say here is - The time to be Greedy is close, because the World around us is becoming Fearful.
I shall inform you when to start Buying. Till then enjoy the slide.
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