Buy the dips or short the rallies?

Bulls come up the stairs while bears go out of the window! That’s what we have witnessed in the last few sessions. Gains for a few weeks have been erased in a few days. This is a classic bull market correction.

Technically, we have hit the supports of 4550 on the NIFTY and it is is very likely that we show some bounce from here. At the same time, if I am trading short term, I won’t see it is an opportunity to go long. I might see it as an opportunity to exit my dead stocks (real estate, telecom etc.).

We need a real sharp pull back above 4850-4900 in order for uptrend to resume again. Otherwise, this market can continue to slip or remain sideways. Watch for 4350 on the downside and 4850 on the upside.

Suzlon,RCOM and Unitech are good opportunities to sell on rallies. Same holds true for all ADAG stocks like Reliance Capital, Reliance Infra,Reliance power etc.