Nifty Has Got Some More Steam Left?
Updated
2000
2008
And now
2025
Nifty is expected to witness decent Profit booking in the Year 2025.
Sit on at least 50% Cash to be prepared for the Crash!
17000 to 18000 Levels could be tested if History is to repeat itself.
Theory behind this Possibility playing out:
Every time Fed has started QE, Stocks have corrected by around 50 to 60 %.
Be it 2000 or 2008.
The Lag period between the QE and Profit booking has been around 4-5 months.
If Fed starts QE this September 2024, then Feb 2025 is expected to see a Profit booking!
Note: This is Just for Educational purpose. Do Not Speculate and Trade on basis of this. 🙏
2008
And now
2025
Nifty is expected to witness decent Profit booking in the Year 2025.
Sit on at least 50% Cash to be prepared for the Crash!
17000 to 18000 Levels could be tested if History is to repeat itself.
Theory behind this Possibility playing out:
Every time Fed has started QE, Stocks have corrected by around 50 to 60 %.
Be it 2000 or 2008.
The Lag period between the QE and Profit booking has been around 4-5 months.
If Fed starts QE this September 2024, then Feb 2025 is expected to see a Profit booking!
Note: This is Just for Educational purpose. Do Not Speculate and Trade on basis of this. 🙏
Note
PE of Nifty around 23.4 @ 24835 with EPS around 1060.Median PE of Nifty 23.5
Mean PE around which profit booking is expected is 28 to 30, with current EPS, the expected price is around 29700 to 32000
Let's see..
Correct me if I'm wrong..
Note
On Contrary, If there happens to be a Earnings Compression as a result of Elevated Interest Rates, The EPS of Nifty may take a Hit.. Which is quite likely.If there is 10 to 12 % correction in EPS, it would bring EPS to 930~950..
That would result in PE ratio getting spiked to 28 even at 26000 to 27000 levels.
So keep a watch.
Will update when and if any Supply Zone is established.
Note
In 2000The Correction had begun before the rate cuts began.
The Rate Cut beginning was followed by a retracement of 0.5 to 0.61 of the correction for 4 months followed by the resuming of the fall.
In 2008
The Market was in an up trend.
The Rate Cut was followed by the Continuation of the Rally for next 4 to 5 months followed by the correction.
So be prepared to book profits in Max 4 months from the beginning of the Rate Cut.
Note
24500 is crucial zone.. for any reversal if it has to happen.
above 24500, 24800 is a possibility.
Below 24000, 23000 could be tested in no time..
Note
On sustaining above 24500, 24800 is possible Note
On sustaining above 24800, next target 26600 zoneNote
24800 done above 24500
Hovering above 24800
Let's see
Note
With more than 100 points gap up likely..
Short covering may begin..
Note
SC going GoodNote
Towards 26500 Note
Nearing 26500
We are close to the Parallel Channel Resistance
Note
Quite a Strong Profit Booking around the Parallel Channel resistance mentioned..
Note
Exhaustion around the corner Note
Reversed exactly from given level of 26235 
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