Markets tumbled once again after 2 weeks of gains. The fall was again across the board and none of the sectors was spared. There were no places to hide since even defensives like FMCG are not able to hold the their prices. There were no notable gainers from Nifty except Nalco, which added more than 6% during the week. Suzlon, Zee, SAIL, Unitech, Tata Motors, DLF, ACC, M&M, L&T, Maruti and Tata Motors were among the major losers.

As has been our view since past 2-3 months, markets don’t look too promising for the foreseeable future. Things may become worse than what is being talked about and hence we might not see any recovery in the markets. Supports exist for Nifty at 2600 and further at 2520. It may find it difficult to breach 3000. We have been witnessing sharp bounce backs every now and then but we feel that from the current point even bounce backs would not be sharp. So a short trader carries with him lesser amount of risk and more rewards. We recommend medium and long term investors to liquidate their holdings and stay in cash. The fall may not stop here but it cannot go on like this forever. Hence traders should make the most of this situation and try to make bucks as quickly as possible. We may see the pace of the fall subsiding after a while but not the actual fall. Investors are still not willing to accept this fact since we haven’t witnessed it so far, but we see a strong possibility of this phase remaining for a long time.

SELL
Siemens @ 300-302 Tgt 278, 264 SL 314
Rolta @ 170-172 Tgt 154, 146 SL 175
IDFC @ 66-67 Tgt 62, 57 SL 71
Cipla @ 191-192 Tgt 181, 174 SL 195
National Aluminium @ 181-183 Tgt 168, 150 SL 185
Praj Industries @ 73-74 Tgt 66, 61 SL 76
ICICI Bank @ 408-410 Tgt 376, 333 SL 420