Good Morning!
It has been years since I have updated my views on Nifty
through this blog. In the past four years things have changed dramatically,
especially for the stock market. Nifty which had been struck in a range, have
broken out and had witnessed a steady rally since then. For this reason, even
before I start blogging Nifty daily updates, let me update you on the longer
term view and intermediate view on it. Along with Nifty updates, starting next
month, I will also start sharing my views on stocks, currencies and
commodities.
Nifty – Long term outlook
Let’s look at the Nifty’s monthly chart to understand the
long term outlook. Many technical analyst consider December 2013 as a break out
month, but for me it’s month of September when things (especially technical
indicators that I look out for) have started moving on the positive note. Ever
since September 2013 when this current rally began, Nifty had been making
impressive moves favouring the bulls. The multi month Bull Run have gained
momentum with each passing year. Technically speaking, the multi month Bull Run
is far from over, rather I would say we have just began and have many more legs
to witness in this rally. Looking at the chart closely and especially looking
at the technical indicators, RSI and MACD it’s evident how things have started
to cool off in the past six months, i.e. we have entered into a correction
phase. This marks the first correction phase post the technical breakout that
we have seen in September 2013. The question remains unanswered, is the
correction over? Well this question would have be backed by the up move that we
have witnessed in Nifty from 7940 levels. To answer this question, we need to
go and look at the Nifty chart with lesser time frames like Weekly and Daily
chart. However, am going to make this blog more curious and wanted to share
knowledge rather than giving you answers (that one number called target) all
the time. So, this would be the topic for blogging tomorrow.
One definite thing to carry today: Nifty’s multi month Bull
Run has begun and has more legs to come. If you are a long term investor,
forget about the correction that we are witnessing for past six months and stay
invested as a part of your wealth creation.
For tomorrow: Is the correction over? What are the key levels
to watch out for?
Happy Investing!
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