Devastation in Japan, Libyan Crisis, Uprising in Bahrain, rising Crude Oil, etc so many negative news around the world is certainly causing the pessimism in the market. RBI by hiking the rates by 25 bp didn't help the matter (since inflation had come down, there was no need for this hike). "Money for Votes" scam is another factor which has added to the long list of corruption list and certainly dampening the investors (esp: FII's) mood.
Technical
Looking at the charts, Nifty hasn't been direction less for so long in few months now. Overlapping and small body candles are enough to tell us that bulls n bears are without any heed. Last friday's drop (~2%) has bought Nifty to kiss the SAR and also 10 period donchian low. Any downwards movement from here could signal another downturn (we are already in a medium term downtrend).
Stocks
My advise, stay away from new investment. (things in Libya could get ugly). If you have to, I like the way ACC and Reliance Capital are behaving (strictly technial).
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