FII going back home

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Dear Investor,

My observation is FII funds are going out of markets. US and Europe markets are going up. What does a common sense tell you? I feel, FII is returning back home. They are taking money back to hometown and want to invest in cheap markets of their own. India markets were overvalued but were not easy to correct. Finally they have started to correct.

Look at FII fund flows. Its not important that negative fund flows are increasing; what is important that they have stopped investing into the market. They kind of provide floating support to our markets. It will return and it will return when stocks are cheap and hated most and nobody wants it.

NIFTY outlook

People have already started guessing bottoms. We have arrived at a point of maximum support. This support around 5300 has to hold. It has to hold. What is expected to happen is when 5300 is broken huge mass selling will kick in. If we close more than 4 days below 5300 then it is your shorting opportunity. At this support line of 5300 all the shorts have to be really really cautious becase a dead cat bounce cannot be ignorred and shorts will be burned.

I am not looking to short, in fact I am waiting for my entry point. If the market continues to hold 5300 and we see high volume upside days, it will rally but I do not want to guess. I want to see it unfold. Market is nobodies friend it can change direction at any moment or continue its current fall for time to come. There is no need to guess bottoms. Let the market show it to you. I am with bullish mindset hence looking for entry point but will not enter until market turns around. I can't guess. Guessing has burnt me many time and I do not want to experience again.

Some ideas for shorts if market continues it flow down

HDFC at its long term support and any close below 580 should be taken as shorting opportunity
ICICI is a good short if it closes below 940
IDFC is in full breakdown mode, its a good short right now just be careful a close above 146 you must exit your short.
Kotak bank below 350 is a great short


Real panic selling has just began in almost 70 percent of NIFTY stocks. People who were not willing to book profit are now willing to book losses and save whatever is left. It will be a great buy point, may be the last great entry point before we zoom to new highs. Be careful be safe. Don't play short if don't know how to do it.

True buy point to come after market closes above 5500 and stay there for few days.
Thanks
Anil
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