Sell on rallies! The best way forward, say experts

Moneycontrol Bureau

It was another distressing session on Dalal Street. What began as a muted session, ended up being a total washout. European jitters took centrestage yet again, and the markets sold off in late trade.
The Nifty lost 80 points to close just below the 5,070 mark and the Sensex lost 240 points to end at 16,880.
The relief rally from 4700 to 5400 has ended, according to Sudarshan Sukhani of Technicaltrends.com, who feels "sell on rallies" will be the mantra going forward.
"Today, we saw a very decent rally after the market opened. If somebody was not short, I had suggested go and sell now. Your stop for that rally was 5250. You could even move down your stops now. But even if you keep it at 5250, and be safe and give some leeway you should be short," Sukhani said. What happens to a person who is still not short? Well, Sukhani advises one could buy December Puts now. "You could buy 5100 puts for the month of December and this is a time again to enter because way the market has cracked, we have broken 5150 effortlessly. This crack tells me that we are going to test 4700 at the very least," he explained.  But how much more can the market fall? Well, that