Hi,
Its been days since I last posted. So once again Nifty formed a new high and again it is heading for some 20 - 23% odd retracements.
Now around 4500-4700 is a quite expected zone for correction for nifty as per most of traders(as if I knew most of traders....just kidding), reason being stocks valuation being too high. One more reason is that most of the big events internally and externally are over. Budget being one of the hopes for bulls which is keeping them busy but besides that I don't think there is any reason to buy at such high valuations until and unless we can see some confirmation from the side of quarterly results.
So if its just retracement then we must buy near 23% fibs retracement if budgets are anything to go by.
Now talking about second possibility there are signs on charts about the reversals(yeah I knew earlier signs have failed). Interestingly this time fibs retracements or waves are moving down in a pattern which confirms reversals. So if we consider the second scenario that its a reversal or minor correction then Nifty should not breach 4535 to 4550 on upside and should continue making lower highs. For an intermediate term it must continue this correction atleast till 4300. Breaking further will validate the bigger correction of this bull rally.
Hoped you loved reading it.
Happy Trading.
Its been days since I last posted. So once again Nifty formed a new high and again it is heading for some 20 - 23% odd retracements.
Now around 4500-4700 is a quite expected zone for correction for nifty as per most of traders(as if I knew most of traders....just kidding), reason being stocks valuation being too high. One more reason is that most of the big events internally and externally are over. Budget being one of the hopes for bulls which is keeping them busy but besides that I don't think there is any reason to buy at such high valuations until and unless we can see some confirmation from the side of quarterly results.
So if its just retracement then we must buy near 23% fibs retracement if budgets are anything to go by.
Now talking about second possibility there are signs on charts about the reversals(yeah I knew earlier signs have failed). Interestingly this time fibs retracements or waves are moving down in a pattern which confirms reversals. So if we consider the second scenario that its a reversal or minor correction then Nifty should not breach 4535 to 4550 on upside and should continue making lower highs. For an intermediate term it must continue this correction atleast till 4300. Breaking further will validate the bigger correction of this bull rally.
Hoped you loved reading it.
Happy Trading.
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