Dark Clouds Loom large over Dalal Street

I had to extend my vacation by one more day and could not post yesterday. It was nice though to stay away from market when bears were marauding markets. Maybe it was a missed opportunity on the short side, but market throws so many opportunities that there is nothing called a lost opportunity. Coming to today, I think the picture is pretty clear. Once inflation spooked us last week and we broke 4370, 4000 was definitely coming. Like adding fuel to the fire, RBI has hiked both the CRR and repo rates, a double whammy of sorts. So we should be opening gap down. However, post that it will be interesting to see if we rebound for sometime or just keep going down. I wouldn't suggest that you stay away from rate sensitive sectors like auto, infra or banks. I will say in this market stay away from market itself today. You will do yourself some good. NIFTY is oversold on intraday charts so even if it opens gap down, we should get some recovery rallies. But none of these rallies I think will hold in this market. If 4000 also doesn't hold then one may short and carry for a target of around 3600 (This is an Elliott wave target).

Get your shopping list ready, I think long term investors can make merry buying their favourite shares by buying their shares at a bargain...