Nifty update - bears are back!

• As mentioned a couple of weeks ago 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.
• 5300-5450 is the zone it broke away from before the huge rally to 6300 so this zone should provide support
• Rather than watching for specific zones one should keep an eye on the FII figures. As long as they continue to sell one cannot expect a sustainable bounce back in the nifty
• 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
• It best for investors to be on the sidelines till we get some direction for the market. Trend would change if we go above 5750 and thus create a higher top
• Traders should wait for the the next rally to short the market rather than shorting now