Word on Markets
Nifty has come a long way in its current movement. As of now there seems to be nothing which suggests that this rally is going to end. In fact, the WRB I have highlighted on the chart are testimony to the fact the underlying Bullish pressure is pretty much intact. I have also marked a trend line on the chart to show the pace of movement. Usually when we see such an angle being formed, we must be prepared to witness some volatility. Volatility in this means, for the next few - many sessions markets are going to be extremely good for day trading. The bias will remain positive, but we will also see negative days more often. The main reason why will see this is because this is a market which has split open Bulls and Bears into two equal halves. On one side, trend followers are arguing that the markets will continue to rise and on the other hand, Bears will argue that markets are seasonally due for correction and are very rich on valuation. The end result could be lack of weekly trend in the market but significant amount of intraday trend going forward. Overall though the markets will continue to inch upwards. Momentum traders should be prepared to adjust their stop losses as and when volatility expands.
At the end of the day, use your own analysis and don't buy what is being reported in the media. They never got this upmove right and hence don't expect them to get any down move right either.
Tc
Nifty has come a long way in its current movement. As of now there seems to be nothing which suggests that this rally is going to end. In fact, the WRB I have highlighted on the chart are testimony to the fact the underlying Bullish pressure is pretty much intact. I have also marked a trend line on the chart to show the pace of movement. Usually when we see such an angle being formed, we must be prepared to witness some volatility. Volatility in this means, for the next few - many sessions markets are going to be extremely good for day trading. The bias will remain positive, but we will also see negative days more often. The main reason why will see this is because this is a market which has split open Bulls and Bears into two equal halves. On one side, trend followers are arguing that the markets will continue to rise and on the other hand, Bears will argue that markets are seasonally due for correction and are very rich on valuation. The end result could be lack of weekly trend in the market but significant amount of intraday trend going forward. Overall though the markets will continue to inch upwards. Momentum traders should be prepared to adjust their stop losses as and when volatility expands.
At the end of the day, use your own analysis and don't buy what is being reported in the media. They never got this upmove right and hence don't expect them to get any down move right either.
Tc