Since festive season is over here in North, I might spare some more time to write on TV.
Let's begin with this post on Nifty . In my last post I tried to time the market in anticipation of a correction. Although market reacted for a few days from there, yet I can't call that a correction. Price-Time analysis has once again been hinting at something but this time let's not talk about time and talk about price action only.
Few words of caution:
First of all we are in the uncharted territory which is highly . But that does not mean that we ll have a parabolic ride on the upside only. There will be corrections and consolidations.
Secondly, we are at the upper end of the , in which markets have been gyrating for the past few years, which could be a concern.
Thirdly, patterns similar to previous corrections have been observed near the upper end I just discussed.
Fourthly, Jumping out of the channel takes us to an overbought zone which demands consolidation/correction. I am just saying it on price action basis not on any indicator basis but you can have it confirmed if u want to.
So If history is to repeat, we might see correction. In this scenario 10400-10425 would be the level to watch out for. At present I ll not discuss levels below this point and would reassess once the market reaches that point.
I might be wrong:
I would be happy if markets correct but my heart ll go "gaga" if markets make new highs, because I have just reduced on my long positions I am not short yet.
So let's say the current move has more legs on the upside.
Here I would assume that markets have been trying to develop a new channel which has its upper boundaries outside the current channel.
What should be the levels on the upside to book more profits?
I ll look for 10800-10850 zone to book some more profits.
10930 would be an extended zone for major concern.
If this level is achieved and we correct, 10530-10600 zone may offer a first level of support.
I a nutshell, in the backdrop of the above cautious notes, I would like to book some profits at this stage and would use trailing stops on remaining positions.
May we all make nice profits in this year too.