Many business papers wrote that the market slumped owing to the passage of Food bill as it would burden the CAD. In fact on 21^st of August 2013 we wrote “The market may move up sharply today as Nifty has lost heavily in the past 3 days. However the falling rupee, problems in CAD, changing FED policy may restrict the up move of the Nifty.”

Yesterday in the morning post we wrote “In order to consider buying some stocks the Nifty has to close above 5500 first. Only when it closes above 5600 bulls will be comfortable otherwise we have to think the current up move as a dead cat bounce.”

Members would appreciate our newsletter as we clearly informed that the up move is sustainable only when Nifty closes above 5600!

What to expect from the market now?

The market is expected to remain volatile today owing to the expiry of August 2013 series F&O contract. Yesterday, the rupee weakened further against the dollar and closed at 66.1900 per dollar, sharply lower than its Monday’s close of 64.3075. Nifty may go back to the levels of 5000 or lower now. Today the market is expected to go down further owing to the weak Asian markets and the poor investor's sentiments.