Falling all over!

Sometimes it takes a good fall to really know where you stand. – H Williams. Red ticks are set to invade your trading screen, as concerns about the US economy and slowdown in China add to ongoing problems in Europe. Domestic problems have only got compounded with the dismal GDP report. The much weaker-than-expected US jobs data has raised fresh doubt about the health of the world’s largest economy. The S&P 500 index is below 200-DMA while the Dow has erased its gain for 2012. The S&P 500 and the Nasdaq are down over 10% from the year's highs. The CBOE VIX was up ~11%. Flight to safety continues, with investors flocking to US treasuries and gold. With every passing day, investor confidence is taking one knock after the other. There could be more pain in the near term, as policymakers across the globe struggle to address their economies woes. Stick to a defensive portfolio as there doesn’t seem to be any safe place to hide. The Nifty last week succumbed to fresh selling pressure and formed a bearish engulfing pattern on candlestick chart. It thus violated a long-term trend line support below 4860 levels. A move below 4788 will lead to breakdown below the three week's low and would be suffice to aggravate selling pressure in the near term. Key Results Today: Bilpower, Denso India and Eveready Industries. Trend in FII flows: The FIIs were net sellers of Rs 2.2bn in the cash segment on Friday while the domestic institutional investors (DIIs) were net buyers of Rs 2.05bn, as per the provisional figures released by the NSE. The FIIs were net buyers of Rs 17.52bn in the F&O segment on Friday, according to the provisional NSE data. The foreign funds were net sellers of Rs 6.34bn in the cash segment on Thursday and the mutual funds were net sellers of Rs 4.57bn on the same day, according to the SEBI figures. Global Data Watch today: UK Spring Bank Holiday, Australia TD Securities Inflation (May), Australia Company Gross Operating Profits (Q1), BOJ's Governor Shirakawa Speech, UK Halifax house prices, EU Sentix Investor Confidence (Jun), EU Producer Price Index (Apr) and US Factory Orders (Apr).