After yesterday's and todays cuts, NIFTY 3 month chart is now showing a nice round dome (technically called a round top). A round top usually leads to a deep cut to complete the drawing of the round top. NIFTY's round top completes at 5600. I had been saying that Q2 will not be such a good quarter. If the NIFTY falls below 5933, expect it to bleed further to 5852. And below 5852, the correction will be more rapid as NIFTY will try to complete the dome as completely as possible. This may not happen if NIFTY can cushion the fall somewhere between 5900-5933 and steady itself.
Long term investors should not be bothered or panic with this impending 6-7% correction in NIFTY. In fact, good buying opportunities will re-open.
As to the calls I have given, you are safe on most of them if you have not bought on margin, which I strongly advise against. They will eventually reach their targets, may be taking a bit longer time. Most of my calls which have reached targets (many of them have done so, as u know) have reached it before the hold time I have indicated.
Next week will be decisive and the markets will decide how much cut to take before stabilizing. In the longer term, I am still bullish on NIFTY and it may touch a new high close to 6455 in the next 3-4 months.
No comments:
Post a Comment