What are the stocks to watch out for?

There seems to be no end to the mayhem on Dalal Street. Markets continued to tumble deep into the red. The Sensex breached the crucial psychological level of 13,000, while the Nifty slipped below 4,000. The Nifty finally closed at 3,896.75 down 143 points, while the Sensex shut shop at 12,904.09 down 557 points.

Vijay Bhambwani of bsplindia.com said the next support level for the Nifty is 3,640. "A couple of months ago, I had advocated 4,365 of which 3,960 would be the support to watch. Now, 3,960 has come and gone and the next inflection point as per Fibonacci and charts would be 3640. We need to watch Nifty 3,640 now as the next possible support. The bull market is not over. This is a vicious correction of a very strong bull market."

Vijay Bhambwani thinks Reliance Industries offers a safe bet in a falling market.

Here's how Vijay Bhambwani views the stocks on board:

On Reliance Industries:

Reliance Industries should offer some relative comfort, although relative returns are not really anything to go by.

On RNRL:

Fertilizers, sugar, and RNRL are likely to be disappointments. Once the market starts to fall, I don’t think there is anywhere to run. As a matter of fact, we even trying to influence investors to switch to precious metals and move completely out of equities.

Disclaimer:

It is safe to assume that my clients and I may have an interest in the stocks or sectors discussed.