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NIFTY SHOW - SLAUGHTERED

Nifty witnessed a gap down opening,the overall market breadth being broadly negative with 357 advances to 1121 declines.A bearish opening was expected,but the markets said it clearly what it had to slaughtering 90 odd points.The index experienced a 2% cut in a single session.This fall poised the markets to renter in to the wedge broken 2 days ago.Today's move made the breakout fail and hence the pattern,with this stance i smell of a bear trap ,which could eventually lead to a strong bearish  reversal of  sentiments.
                                       In such circumstances  i expect the markets to trade lower in coming days,also approaching the 200 DMA would not be a surprise.But this time chances are more that the picture might change.Holding this support this time ,I doubt  it.Hence watch the markets for 5080 levels and in worse case 4850 in coming days,I don't have a 100% count on it,but yes, i do see somewhere bears gearing up for riding the nifty down.The markets are seeming vulnerable these days,also the big boys are fumbling in their quarter performances,while the global are alternatively coming up with financial tsunamis and policy earthquakes.
                                                                      As of now trade can be initiated on the short side ,i.e. sell on rallies.But be cautious about the 200 DMA when markets near it.,At that time watch closely whether markets again bounce or violate.The markets have closed below the 20 and 40 DMA respectively.Also the stochastic have given a negative crossover.The Momentum indicator RSI has also again reverted and hooked down from the 50 levels.As we see no trend these days MACD is running flat ,but about to give a negative crossover,and is still trading below the zero levels.
                                                      Markets has been trading in consolidation phase from past many weeks,hence i expect a strong breakout ,since longer the consolidation more significant the breakout.5211,5256,5305 and 5340 be the resistance going up.

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