Deflation is good news for India.

Crude is down, prices of commodities are tumbling. All of this is good news for India.

Yet, we have seen that the U.S. Markets fell big time yesterday, putting question marks over the rally that we saw in our market.

My view is easy to understand: The Nifty has strong support in the 5000 zone. So far as this support holds, I assume we are in an uptrend. The first signs of distress will come if the Index goes below 5040. But, markets are volatile and will remain so.

We have to adapt to these volatile conditions. Trade only one side (long or short), keep volumes under control, take profits wherever possible.

I will remain a buyer on dips, the kind of which we are likely to see today.