Market Update

•Nifty has broken down below the 5700-6200 range after testing 5700 a few times in the past. Also in doing so it has created a new lower bottom and thus has given a Sell signal as per Dow Theory.
•FIIs continue to sell.
•Irony is Western, European and Asian Indices all continue to be in uptrends so the global scenario is positive. Dow Jones has support at 11000, S&P at 1230, FTSE at 5800, Nasadaq at 2650, Dollar index in downtrend…resistance at 81.5 and 83.5
•We are near the 200 DMA which is a zone where there is massive fight between bulls and the bears to decide the next direction. So it is choppy and expected to be choppy for the next few weeks
•For long term investors it is best to be on the sidelines till we get some direction for the market.
•Bank Nifty is now clearly making lower tops and lower bottoms. Every rally is being sold into and is a great shorting opportunity for traders.
•IT Index continues to show the highest relative strength
•Realty continues to remain very bearish

Strong counters in the current market – HCl Tech, Sun Pharma, TCS, Hindalco