What these experts say ............ ?

Rajat Bose of rajatkbose.com said, "After such a large fall during the day when the Nifty futures was bouncing back from 3,840, I tried a contrarian long position which was with a very minimal exposure. But even that had to be stopped out."

At the moment it is likely to test that 3,799 to about 3,790 support area quite soon, he added. "Most probably during today’s trading session, it might get tested and can be negative because that level has given support twice and now it would not have as much buying interest as it had in the past. So I expect the major support area for the bull market from 3,640 to about 3,603. This range is likely to be tested shortly. So I will not advocate any buying. This is an across the board sort of a fall. So one should not try any contrarian position now like the earlier attempt."



Meanwhile, E Mathew of Mathew Easow Fiscal Services feels that the market is close to the important support zone of 3,800. And that would be a region for people who are short to cover somewhere around 3,800, he added. But for intra-day it may even go to as low as 3,780, which is an important retracement point, he said.

He feels that 3,780-3,800 is a strong support zone. "So for shorting now at 3,874, virtually one is now playing for the next 70-100 points and the stop loss would be around 3,950 to 4,000. It would not be that profitable a trade. But yes, individual stocks certainly are showing further weakness and one has to be a little more stock specific here," he said.

Ambareesh Baliga, Karvy Stock Broking believes that the sentiment has been very badly affected. Currently, the FIIs want to get out of the market. "A market where the participation across the board is so low that the cost has actually moved up quite high because of which even a small amount of selling is breaking prices for most of the stocks. People are tired of looking at the losses. So, they are clearly turning away from the market."

Baliga feels that currently people do not want to take fresh positions because the mood has changed a lot in the past couple of months. "Post January till possibly around April-May, people are looking at the benchmark of January highs and feel that they would get 30-40%. So possibly that is the reason one should be buying." But month after month the markets have seen new lows being touched. So, at this point in time, people have actually given up on the market, he said.

Baliga does not advice people to go short because one does not know where exactly it can turn around. "However, a turnaround from these levels can possibly give a 10-15% spike, although the way it has fallen it will not mean much," he said.

At this point Baliga suggests that one should stay out of the market, this is not a time to invest, neither to trade. "Let the market touch the low point and then possibly once it recovers from there, that could be the time to again re-enter the market."

source : moneycontrol(dot)com