“Qua Vadis” or “Where are you going” NSEI is the question uppermost on traders’ mind in India. Having reached 4800, and wiping away the small time traders (who dared to stick on to their stale longs) by falling briefly to 4711, the index has rallied quite smartly in the last few sessions. But I would like to sound the alarm bells here if you are thinking the worst is over. We should get at least one more dip to test the lows again, potentially even breaking it. There is immediate resistance at today’s high around 5040, and beyond that at 5100/05. Although the prior fourth wave at 5190 area will become a reflex point (read more about the importance of reflex points on my book: Five Waves to Financial Freedom, it is likely we will fail to reach that high. Even if it does, you will see it come down sufficiently to take profits on any shorts you may have at or above 5100. Those who are thinking of buying for the medium term should continue to be patient. Bear market rallies such as these have a habit of abruptly turning around. Good luck.