Germany's 'desperate' short ban triggers capital flight to Switzerland

A year ago, Germany's financial regulator BaFin warned that the toxic debts of the country's banks would blow up "like a grenade" once hidden losses from the credit crisis caught up with them.

But the regulator's shock move on Tuesday night to stop short trading on banks, insurers, eurozone bonds – as well as a ban credit default swaps (CDS) on sovereign debt – has left markets wondering whether the slow fuse on Germany's banking system has finally detonated.
The entire story can be read here:

http://www.telegraph.co.uk/finance/financetopics/financialcrisis/7742355/Germanys-desperate-short-ban-triggers-capital-flight-to-Switzerland.html

My comments: The current situation reminds me of 2008 when Lehman etc were failing. Currently it is countries at risk of defaulting rather than banks. Banning short selling is a bad idea and ultimately will have negative effects. Right now the market is very nervous and any negative news will can immediately result in panic selling. Conversely there can be spikes as is characteristic of a bear market.

The Nifty has immediate resistance at the 200 DMA which is around 4985 levels. 5200 is a much broader resistance above which I would look at going long. On the downside 4667 is the first support.