Today Nifty has broken the important support of 5850 and has seen a sharp fall to 5760 levels. These could see further down side till 5600 as there no support for the Nifty till 5600 levels it could seen the free fall.It took support at 5750 and shown some bounce back on intra day chart.
Nifty has closed below 200 Moving Average that indicates more weakness in the market.
Short term trend show the weakness in charts.Bollinger Band has also open down side which further gives the confirmation for weakness.
My view on Nifty will to be short on Nifty for 5600 levels and cover the short by taking a call of 5800 where by that will protect form short covering.
Short position are build in open market so you can see some bounce back for short to be covered.
Stocks which look good in these market are :-
1. Pipavav Shipyard Ltd.
2. Jubilant Foodworks Ltd.
3. DLF Ltd.
If the strategy which recommended by me on 1st Dec 2010 when Nifty was at 6000 currently 5760 . Nifty has seen 240 points form the last recommendation on Nifty.
Thanks & Regards
Dev Purohit
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