As warned in earlier blogs there was massive sell of in last two weeks wiping of 2000 points sensex in toto.
The sub prime issue is more serious than it seems like (warned about the same in last blog).It seems that it will get even more serious in coming days which can be seen from cosmetic acts of various governments to inject money and rate cuts.
Even India seem to be prevented from massive sell off due to LIC,DI(forced by govt!).
But fresh credit injection will maximum lead to sharp up move for 3-4 days due to short covering and may be some bottom fishing.
But its now clear that all the markets including India will see one more sell off if not more in very short term.
Advice will be stay cautious for short term traders if praying does not work:)
Long term investors got ideal time to buy blue chips now.
Maximum pullback expected will be around 4240-4300 NF.
Fresh longs should be avoided till next week.
