The best way is to wait and watch and not to open any trade at this moment but wait for couple of trading session in the fresh next week so that there is more certainty than uncertainty. If Nifty breaches 4450 levels, the downside could drag us to be as deep as 4000 or lower but is able to close around 4800 or even above those levels than it would give a better indication of where is the market headed in the short term.
This means if you have short positions open its better time to cover them up and if you have any long positions square them off with the bounces and short covering from the current levels and stay with the cash in hand and play the wait and watch game. If we remember the Warren Buffet’s words best way right now is to catch the falling knife and take a long position with the next leg down for couple of reasons. One being oversold, and second one is cheaper valuations and instead of going directly into Indices trading you should closely look at some of the stocks which have come down to a very good valuations and so its better to go for those stocks.
But still it’s dangerous time to open a buy right away and go about it slowly because if the 4450 breaks which should turnout to be formidable support at least for some time from now it could turnout to be a strong support, one cannot say for sure right now.