What you see in the chart is “The Dirty Picture” of our NIFTY chart…..your expressions might “Oh What the F***, 3980????!!!!! Yes guys……My last post on NIFTY suggested that we are seeing upside movement and blah blah…but you know us guys, we typical indians- even we expect Munaf patel to hit a six on last ball and save Indian and so i thought RBI can save us and our market. Last friday showed volatility of almost 200 points which is a sign of indecisiveness of our market sentiments. CNBC poll was expecting a unchanged policy from RBI so was the case but actual traders expected a 25 basis cut in CRR. RBI did intervene in Forex front to stop rupee depreciation but yet not any such move to save NIFTY depreciation. December is the month of christmas and New year eve which is one of the festive where people in US celebrate too possible extent and so they want liquidity. We may see more Capital outflow from our markets this month rather than inflow which is a but obvious. Inflation is easing but not to the extent which allows RBI to reverse is cycle. Manufacturing index is following too so nothing much to cheer for traders this tym around. I have even noticed a large open interest in 3900 PUT OPTION of February so overall sentiments have become negative. Technically speaking, the “inverted Head and Shoulder” which i showed in last post didnt get a completion but rather took a U-TURN. We could see on daily chart above (as well as weekly chart) that a Upside Head and Shoulder is completed on last friday and close has been below the neckline. So we could say that we are seeing some more downside with target of 3980 if the close is below 4750 for more 2 weeks. But but……nothing is impossible -Mission Impossible 5 Staring Pranab mukherjee as TOM CRUISE….yes…next two weeks are just last 2 secs of MI-4 before which tom cruise completes its mission..can our TOM CRUISE do something like that???…Techincally Indicators are positive while chart is negative so its the crucial moment in coming days….yeah but surely sell if the close is below 4578 for 2 days!!!!!!