NIFTY/SENSEX have continued to drift relentlessly under the pressure of tired bull liquidation. Both the indices are approaching the panic low of 4468 and 14677 respectively. The fall in equity values has been precipitated by the stocks from AUTO, BANKING, PSU and CAPITAL GOODS SECTOR which have registered a new low. Stocks from all the other sectors are far off from the present fall. All the broad-based indices are, in spite of the present fall, in comfortable zone. To be specific, the present turbulance is due to the dollar affected sectors.
Technically, the stocks are trading in an extremely oversold zone and hence fresh short positions may prove disastrous. It is certainly not a time to be adventurous with all the sectors. Pick up the stocks from the remaining sectors which continue to out perform both NIFTY/SENSEX by wide margin.
NIFTY/SENSEX will have to cross 4691/15865 respectively today for a sustained recovery. Alternatively both the indices can drift further to 4470-4480/15150-15180 zone.
There is,however, no need to panic.
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