NIFTY closed below 5300 though at the day's HIGH on 5th August, 2011. Hence, it gave mixed signals in terms of the direction. Generally, the market would close around the day's LOW else, it could be a trend reversal signal.

However, gap down opening again today, has confirmed the bear phase of NIFTY. Let's see if it is able to hold 4980 level. If it doesn't, (which in my opinion may not be held for more than 2 days), we are likely to see a free fall to 4700, 4200 and may be 3175 in next 6-8 months.

It's not time to invest in the market and investors should stay away. Those invested with a horizon of less than 6 months, should exit and enter after or around diwali, after checking signals on Diwali muhurat trading.

Yes, the traders should look out for Short Selling opportunities in the market. The decline is going to be sharp.

As they say, "Bull climbs through stairs, and Bear goes down by lift"