Nifty is Oversold at 11600 on 23-AUG-2018 and I made a post stating that Internals(Composite stocks of Nifty and Weightage ) are giving a sign of reversals - Yes after that a huge reversal came in to game and Nifty is down to 10900.
But Many of us predicted that Nifty will bounce back - But unfortunately it didn't because of the IL&FS shock. An NBFC to which all the public limited banks have 16% of total debt exposure.
A fail of IL&FS is like a shock wave to Indian Economy, This triggered a bullet in to Indian Domestic Investors, Mostly Mutual Funds, which has a very high exposure to this Event. So a huge out flow was triggered as an outcome of this NIFTY/SENSEX had seen a Disaster.
See the Composite Negative of Underlying NIFTY STOCKS, outflow is more than 3 times of Inflow, so the outcome is a Disaster which made Nifty to drag below 10400.
So, sometimes these kind of Major economical shocks are really bad to save any kind of .
If is so correct - Lehman Brothers would not have gone bankrupt during US economical crisis.
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One has to understand that, indicators are just indicators not the deciders.
You will just take the position and if you are happy with your profits exit. Then, Sit calm and wait for next trade.. ( Your weightage indicator is showing which side you should take the trade :) )
No one can buy at exact low point and sell at exact high point.