Technicals Talk

INDIAN VIX
lat present near 40. and in totally over sold territory. Its said that when VIX goes above 50 level then scrips go mad for a dwn fall. The Indian Story is no different, they are just trying to delay the inevitable. Since the CBOE Vix (Chicago VIX) has made a bullish crossover in DMA pattern, and our VIX in oversold conditions, we can expect it to make a bullsih crossover & press the panic button.

NIFTY
No trade zone for last 2 weeks. just trading and trending in a very narrow range, that looks more like a railway track in DMA pattern. With 200 & 100 DMA constantly falling we are in no doubt a long term downtrend and SMR in over sold zone at 24.34 we can expect the further dip possible. The big thing to watch is that wit every over sold level at SMR in last 3 times, NIFTY has shown decreasing values. From 3110 to 2780 level we have travelled on SMR over sold levels. but the only thing showing difference in last 3 situation is that during the earlier situations we were having over bought conditions in NIFTY as well as per RSI, Stoch, %R and many other indicators. but this time only SMR indicates a downfall on cards and rest other indicators project a diferent image for NIFTY for a possible upmove of around 100 points. But, since overall trend is down and nifty is not showing any suatained upmove, i myself believe that NIFTY is sure to fall, if not big time then for good time. but the fall is on the cards. So its better to BUY PUTS for 2700-2800 march series or Short Nifty on all possible highs we see in MARCH or APRIL, and sit patiently to witness the falling financial market

Regards