NIFTY - A Comparison between 2008 and 2012 time period

It is really very interesting to see at two different time periods how NIFTY is performing overall on charts. We are undergoing a recession period triggered primarily due to European crisis vs 2008 US sub prime crisis

While it is evident on charts that decline is visibly seen when we broaden the horizon. What is more interesting to see that NIFTY has completely behaved in a much different way when compared to 2008 crisis

During 2008 and 2009 period we witnessed a steep decline and it was at lightning pace. However during 2012 time NIFTY is dragging it sideways making the downward movement more worse and testing patience time and again. 

The above chart is a daily EOD chart and similarly when we plot weekly charts it is even more clear on what may happen to NIFTY in future. Absolutely connecting Elliot waves and Fibonacci retracement concepts one can easily say that 4290 to 4350 levels are very likely possible on NIFTY

Drawing linear regression line from current levels we can clearly see that we may see a downward 5 wave pattern which may take NIFTY all the way down

Now question in mind is which sectors will get affected the most and where should we put the money in. If you notice my previous posts on "Stocks that you should consider keeping in your portfolio" http://analyzestockmarket.blogspot.com/2012/08/stocks-that-you-should-consider-keeping.html it is very clear that investors are moving to defensive stocks that is especially in pharmaceutical and IT sectors