7 reasons to indicate the End of 2014 pre-election rally for NIFTY

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With respect to all technical indicators I am expecting that today is the end of the Nifty pre-election rally for short term.

My reasons
  1.  Nifty is over bought with RSI above 80 for more than one week.
  2. A rally at all time highs will not sustain when mutual funds are net sellers for very long period.
  3. FII liquidity is the only driving force for Nifty right now.
  4. Despite a huge rally there is no retail participation. It may not come untill the election results are out.
  5. Trend lines on daily charts indicate market at resistance.
  6. Rupee has consolidated at recent highs. Charts indicate a possible selling in rupee. Which is not good for Nifty
  7. Nifty PE is at 19.12 which is a bit over bought.
I am expecting market to correct from these levels till the elections. Individual Stocks may rise based on independent reasons but as a whole the market will remain choppy with negative bias. But don't expect any huge fall until elections.

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