IT MAY BE HEADING
FOR SEVERE CORRECTION OR CRASH LIKE SITUATION
After
making bottom at 6825.80 on 29-2-2016 it has been moving up for last more than 4 months. But off late stock
tips have started circulating and you would find that the stocks which
completely lacks fundamental have started rising relentlessly and a sort of euphoria
is building up and the over optimism is present in abundance. The valuation are
also stretched and all these developments are a warning signal. Please note that
same atmosphere has started building up as it was before the crash of
1992/2000/2008. It may take few days/weeks and months but crash like situation is
likely happen may be latest by Sept-2016 or earlier any time. Therefore it is
suggested not to get carried away by the market stock tips and do your own
research and pick up stocks with sound fundamental and which are available at reasonable
valuation else wait for your price to come to invest. It is suggested not to
chase the stock.
Technically
it has retraced more than 68% of fall taken from the all time top of 9119.20
and the recent major bottom of 6825.80, furthermore market is moving in 8 years
time cycle it crashed in 1992 then 2000 and then 2008 and we are in 2016 now so
there is a potential threat of a crash like situation (see my post of 6-1-2016).
Therefore please note that it will need a very strong trigger to push the
market forward from here. The important points for it are 8336.30/8243 &
8170 as of now. Please note that break below 8336.30 will be an alert sign but
as long as it holds 8170 hope is alive for continuation of the up move for some
more time before the inevitable could happen.
Remark:
- It is precariously poised, so be alert and cautious and take your
trading or investment call judiciously.
Disclaimer:-The view expressed
here are solely of the author and he is not at all responsible in any way for
the outcome of the trade you enter based on the above view.
Note:
Price stated here is of spot market.
Contact me for
strategic guidance to enter and exit the trade.
I learned good facts on Indian stock market here.After crossing the psychological 8400 level, the NIFTY has without much an effort crossed onto the intermediate RESISTANCE of 8530 level. The NIFTY is still maintaining the ‘Higher Top Higher Bottom’ formation, both on Daily as well as Weekly charts; which shows that the Bullish momentum is holding on. Live updates can be gained by joining epic research.
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