Nifty Long and Short Term Picture

Dear Investor,
Nifty has a long term good news and short term risky news. Risky applies to either big profit or big loss. The point is opportunities will always be there, it depends which side of the game you are on. Most of us are usually on the wrong side and hence loose money.

Following is a long term monthly chart of NIFTY index. It is screaming a BUY signal as of last weekend. There is a loss of momentum but bias of long term bull market should be active in your mind. What this means is you will buy weekness in this market. Well, there is a catch in such situation. Even though the market is overall buy, there will be quick rallies and deep corrections. How to judge the time is right. I will show in next picture.

Following is daily chart of NIFTY with the same indicators of monthly chart are drawn and it is plotted on daily basis. I see a sell signal on daily chart. The point to take with you is that its not necessary to trade  each and every move in the market. There will be times when you need not trade. Let the market line up for you to take positions.

I have not given in any clear buy recommendations as before in last few months. The reason is I don't see that kind of set up. Market is just going up and down without any clear direction. Now with monthly long term picture is clearly on bullish side, I guess we could raise our risk appetite. Again its the overall long term picture. Daily 100-200 point moves are not ruled out. those will be the part of the game while overall everything moves up. I guess is it might not pick up steam quickly. But you never know the market.

OMAXE is giving bullish signs to buy and hold this stock. I will be watching it for close above 150 day line. that will confirm the long side of this stock. The setup is very bullish though.

If you have observed how bharti acted after my previous blog, you must have noticed that it did not make it to 325. it reversed from its recent high. That is a reason I like to wait for stock to close above its previous high and stay there for 3-4 weeks.

Do not get emotionally carried away with this current move. We in general are worried about missing out on gain. We don't mind loosing money because everybody is loosing at the same time but missing out and watching others grow is just not acceptable. Those are the moments where people end up making wrong decisions. Do your analysis before you buy any stock. The opprotunity is coming and its coming in a big way. Patience it key. We are in Long term bull market. Cheers



Thanks
Anil
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