NIFTY is a Bear Hug!!!

NIFTY breached 4950 support which was held strong in the earlier bear moves and has closed lower. 38 stocks from the NIFTY list are bearish, 10 in the sideways and only 2 stocks are in the bullish side today. Very strong bearish sentiment has got hold of NIFTY. So far today, Indian markets have been the highest losers with a close to 3% loss on Index values.

Bearish sentiment is likely to continue further, the next minor support is at 4810 levels. On breach that the next stop can be at 4730, which is quite far away from today's close, but bear markets have the potential to do big time falls. Our short trade on the hourly charts has given amazing moves today, at close we are up close to 150 points in paper profit. How much from that is hard gains will be seen in the next session.

Global markets at present does not show much weakness, hold on to stops. Turnarounds can be swift too as governments across the globe are desperate to arrest the fall in the Financial markets. They are resorting to all measures; some can be adverse like the German Government move yesterday.

FINANCIALS and BASIC MATERIALS Sectors were big time losers today both losing more than 3% on their index values. Metals Industry segment on the whole have lost big time today with losses ranging between 3-4.5% on Index values. Private sector Banks have given back 4.5% on its Index. ICICIBANK has lost a whopping 7.30% today followed by KOTAKBANK losing above 5%.

Financial community is losing Investor confidence worldwide at a very fast pace. Governments running helter shelter to bail out these financial behemoths gives suspicion as to some big disasters are waiting to happen. Those invested in the Financial may please review their positions. There was indication in the 3^rd quarter of 2010 that this Industry is in trouble. While most of the Industry segments were advancing at a rapid pace. FINANCIAL Sector went into side ways mode.

The catch up rally took off late at the end of first quarter 2010, which favored exit route for the smart money. The weakest Industry today was Auto LCV & Tractors; TATAMOTORS goes down by 7.4%. The strongest Industry group was Auto 2 & 3 Wheelers, which has lost only 0.44%.