On Friday the market witnessed some bounce back which was not very convincing.

While FIIs continue to sell shares the DIIs have bought the same. The overall sentiments remain bearish as Indian rupee continues to depreciate against dollar.

On Saturday the Gold bounced back to the levels of $1300. Is the worst over for Gold and Indian equities? We cannot guarantee the same. Gold can once again go to the negative territory shortly. The Technical chart of Gold is in shabby condition and bulls may not have a hope in the hell to come back in the near term. Gold will have to close above the $1,325 level to begin a recovery process. If you are not short in Gold then you may try your luck but keeping the stop at around $1330! The bearish descending triangle pattern in the daily chart of Gold suggests a price target of $1180 or lower in the coming days. Similarly, the Nifty has to close above 5757 for initiating a buy call.  All in all bears are enjoying the market while the bulls are crushed to death now. The current knee jerk reaction to the FED Chief statement would continue and we will have to check if Nifty can hold above 5500 in the near term. Interestingly, the panic button has been pressed across many asset classes last weak after the Fed Chief informed that it would taper off its monthly bond purchases. The expiry of the near term F&O market adds critical dimension to the current situation of the equity market. Let us watch the bear hug show and inform about the market in our next edition.