Time to sell and wait

Dow Jones has touched its six-year low and is looking ugly today, says E Mathew, technical analyst, on CNBC TV18. If Dow retests 7200 then Nifty will not be able to hold support levels of 2670-2700 and go down to 2500, he adds. Dow is currently trading at 7372, down 90 points from its previous close.

The market is seeing fatigue at higher levels on account of weak macros, says Vibhav Kapoor of IL&FS, on CNBC TV18. The worry continues on higher fiscal deficit and in such a scenario it will be difficult in the long-term for interest rates to go down, he adds.

The Asian markets are trading weak. The European markets opened weak and continue to bleed. Poor global cues see Indian market under pressure. Sensex is trading at 8798, down 244 points and Nifty is at 2718, down 71 points from the previous close. CNX Midcap index is down 1.59% and BSE Smallcap index is down 1.50%. The market breadth is negative with advances at 214 against declines of 938 on the NSE.

The odds are that the market is looking weaker, says Salil Sharma of Kapoor & Sharma Company, on CNBC Awaaz. If Nifty closes below 2680 then it is headed lower to 2500, he says. The 2500 support is strong and crucial, if that is broken Nifty could be headed to 2200, he adds.

House View: The beauty of a good analysis in predicting the market before the market shows it. We predicted as early as 9th Feb,2009 about market going down (http://the-stock-players.blogspot.com/2009/02/uncertain-market.html) and reiterated it on 16th Feb, 2009 (http://the-stock-players.blogspot.com/2009/02/budget-2009-impact.html)

What the analysts are saying now is only going to fuel the bearish sentiment and once market breaches 8700 it will simply dip to 8000 in 1-2 days and thereon go down slowly to 7600-7400 levels till elections are on. It is still time to book some profits and make fresh buys at 7500 levels.

Disclosures: No personal holdings
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