There is a long term that nifty has traded for almost 12 years. It broke the channel on down side in a very decisive way in 2020, and then got back again into the channel (fast and furious :-)). Since then it followed another (shown in the chart) which is quite sharp . In April 2021, it left this sharp channel (suggesting decline in the fuel, may be using reserve fuel now) and got into the upper half of the long term . Notice, it has never traded in this upper half since the beginning (although tried, but failed). Now, it's about to touch the upper band of the long term . This is where everyone should become cautious. The range where everyone should be cautious is 16800-17000 if it tries to reach it too fast (1-4 weeks). For people with less risk appetite, we already in the risky territory.
Moral of the story:
It's just a story that Nifty is telling, and the moral will be different for every individual, depending on their or their financial consultant decision or their risk appetite.
My personal view:
I'll not be an aggressive buyer at this territory, and will try to book profits in my equity positions, and will wait for nifty to break the upper channel decisively, and retest it.
Disclaimer: The information provided herein is for educational purpose. Please consult your financial advisor before making any decision.
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