Dear Investor,
As I keep reiterating, expect wild swings. We are not out of downtrend yet. The rally we saw was a short cover rally. Lot of people were short in this marker and sudden uptrend start pushed them to cover their positions by buying at higher prices. But we should not ignore the uptrend, no matter what is the underlying reason for rally. Market is going up and we should open our eyes to stocks that have true upside potential. There is no need to get trapped in with something rallying without strong reason to buy. Do not buy because of fear of loosing out. That is a main reason people get trapped.
Following NIFTY chart clearly shows the downtrend line starting last October. Be ready for fast moves up as well as down.
Please add following stocks to your watch list
Textile stocks have started long term bullish moves. I find Arvind Limited is leading the sector. Really investment grade move in this stock.
Bata India is leading entire corrective period that means there is something going on with this stock.
Another textile stock Century Textiles forming base and waiting to break out
Shree Renuka Sugar just formed double V pattern, This is assumed to be very good buying pattern.
Pantaloon Retail is coming out of base. Really good move is expected in this stock.
Another good stock to keep watch is Punj Lloyd
Do not feel bad that you missed great rally. This could be little tricky but this is how the market has been moving now a days. Pick a direction and then run in that direct without any supporting arguments. The problems for sell off are not resolved. But we should only look at the market movement and not the news. If market is moving up the be it. You run in the same direction.
Thanks
Anil
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