Medium term trend turns decisively negative.

Market continues to bleed on heavy FII offloading. As always, markets surprise analysts and market participants by the speed and ferocity of movement in either direction. While a gentle correction to 4750 was expected, the momentum on the downside is something to worry about. We seem to be heading in for a longer and deeper correction where the trading range over the next couple of months is likely to be between 4200-4800 of Nifty. The only ray of hope now are the important results of frontline companies like RIL, SBI, ONGC, DLF, Bharti Airtel, SAIL, etc. which are coming out in the next couple of days. If most of these companies are able to deliver better than expected results the downtrend may get arrested at present levels. Otherwise this becomes a sell on rise market for the short term. Medium to long term investors may use further declines to buy quality stocks. Since the correction is expected to be deep one may in a staggered way and restrict purchases to frontline stocks enjoying leadership positions in their respective market segments.