Last 4 days the news of SEBI order slapping Rs 400 crs on RIL for RPL SAST violation is being circulated in the market. Today the same was flashed on a leading wire channel. The insiders are short in Nifty and RIL since last week and that is the reason even after stunning RIL Q3 results it fell by over 8%.Any way, this was inevitable as in my opinion Indian markets are more pro to manipulations due to lot of loopholes in the system compared to global peers and hence anything and everything is possible in India. Front running, insider trading, engineered falls all are possible in this market. This is the reason I always maintain that avoid F and O as it is the business of hard core traders who wants to take risk knowing all these defects. It is always presumed that traders are fully aware of the risks involved in trading and they are indulging willing fully hence they cannot shift their burden to any agency.For investors it is still a golden opportunity to pick value stocks. SELL is in last mode and if you still not execute the BUY orders, cash will remain cash will never earn like its peer gold and silver. The fall in gold and silver is also eminent as they are inter linked with stock market.Nifty has broken 200 DMA and hence there will remain weakness in the market with visible downside till 5500 5400 and may be even 5300. As per LIC, 5300 is ideal for buying. As per many funds 5400 and 5500 are ideal levels fro buying. However the fact remains, they will never buy aggressively when the selling is there allowing the drift and by the time they want to buy aggressively market will be back at 5700 plus without their kitty being filled. This is market. FEAE and GREED works perfectly. What is true for you is equally true for FII and DII.If you want you can buy and will get 30% return for sure even if the market goes down to 5400 levels simply because on valuations of many stocks we are at 4000 Nifty and not at 5600. Break 30 Sensex stocks by just 2% and see Nifty coming at 5200. Its all money game.The last hope of market is the GOVT because the max money wants to be raised is by GOVT and hence there will be some efforts to restore market confidence.
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Updates 28 Jan
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