Alas we do not lieve in ideal conditions,we have danger lurking at various corners and waiting for something to happen. To begin with shall see the services PMI coming out tomorrow in China early morning followed by our own PMI -Services later .We might see a further rise in the markets taking NIFTY to 6325 or 6330 spot levels. Then the bear comes out with its claws sharpened and we shall see a fall in the market.Which should take us to levels we have visited a few weeks earlier and may be even beyond.The FII's and the DII's would believe cash is king and could take the market down.
The US data which came out last month has been largely ignored and blamed on the weather when it was found not to be convenient or conducive for the markets to rise. This month if the data coming out reinforces what happened last month then all hell will be let loose.The correction in the S&P will be in the order of 15 to 20 percent and even beyond. This would drag our markets further, however we should rise for the pre election rally and de link our markets from the fall in S&P and rise to a level which should see us reaching new highs.Before that we need to bite the bullet and take the pain. We can manage the pain if we are prepared. start building shorts at every interval of rise of the Nifty starting from 6310 levels small quantities of puts or shorts, is the mantra.and when we see the 6335 level we can see the fall happening. Fall is a certainty, timing is the key.This could happen as early as late afternoon tomorrow , 6th or 7th mid morning ,once we top the level said earlier.
As a good scout would say "Be prepared" and make your market or make things happen the way you want it to.Remember the higher you rise harder you fall and the same holds true for the markets.