FIIs continue to sell in May...and go away!

The market is still bearish for the short term...FIIs contine to sell in May...they have sold more than 6000 cr in May...although the market is still hovering around 5000, the global scenario is extremely weak..We can expect a panic selloff anytime in India. Going below the 200 DMA (4985 levels) in India should be a crucial level to watch out for. A selloff in the Futures market can cause a selloff in cash which can cause a further selloff in the futures market. This self - reinforcing process can cause a slide to convert to a crash something like what happened in the US on May 6.