Wait for Investment opportunity_ Nifty50 medium term analysis
Updated
Namaste!
Waiting for a retracement is always a best thing that provide very good investing/trading opportunities.
It significantly affect ROI (Return on Investment) percentage. Please read following points, to get idea what I am talking about.
1. If you can see in the previous weekly candles and overall chart, the market moved higher (since Nov 2020) but with small-small candles.
2. It's very common to understand that it is a nature of a bull market.
3. But in recent two weeks, the market rebound so fast, which is not a nature of bulls.
4. So, I am expecting the market to come down to previous horizontal support, before moving higher. Obviously, this is not going to happen overnight and it may take some weeks to months to reach that level.
5. Keep your funds for investment ready, to exploit this wonderful opportunity, when it takes place.
6. I am not advising you to sell your current investment to buy at more cheaper prices because, it is possible that it takes more time to reach that level and you will be losing opportunity cost of your money.
7. But, you can consider booking profits on mid-cap and small-cap stocks (which you think is overvalued). Because, when markets fall, they react even worse on the downside.
8. My analysis can go wrong, but I think waiting for a right opportunity will eventually pay you off for the opportunity cost (if market proves my analysis wrong).
Disclaimer: I am not a SEBI certified investment advisor. The facts and suggestion given in the above article is based on my understanding and experience in the markets. Please consult your financial advisor before investing.
Waiting for a retracement is always a best thing that provide very good investing/trading opportunities.
It significantly affect ROI (Return on Investment) percentage. Please read following points, to get idea what I am talking about.
1. If you can see in the previous weekly candles and overall chart, the market moved higher (since Nov 2020) but with small-small candles.
2. It's very common to understand that it is a nature of a bull market.
3. But in recent two weeks, the market rebound so fast, which is not a nature of bulls.
4. So, I am expecting the market to come down to previous horizontal support, before moving higher. Obviously, this is not going to happen overnight and it may take some weeks to months to reach that level.
5. Keep your funds for investment ready, to exploit this wonderful opportunity, when it takes place.
6. I am not advising you to sell your current investment to buy at more cheaper prices because, it is possible that it takes more time to reach that level and you will be losing opportunity cost of your money.
7. But, you can consider booking profits on mid-cap and small-cap stocks (which you think is overvalued). Because, when markets fall, they react even worse on the downside.
8. My analysis can go wrong, but I think waiting for a right opportunity will eventually pay you off for the opportunity cost (if market proves my analysis wrong).
Disclaimer: I am not a SEBI certified investment advisor. The facts and suggestion given in the above article is based on my understanding and experience in the markets. Please consult your financial advisor before investing.
Note
US FED increased interest rates by 0.50%. We can expect to see the markets falling in the near term, and reaching the 15247 levels.However, Reliance (Mota Bhai), looks strong and contributing to Nifty till Rs 3100 levels.
Note
US Fed has meeting on 04 May 2022. It his highly estimated that it will increase interest rates. It gives me more confidence that we will see the 15247 levels, sooner or later.Note
It's finally happening. Remember, correction is always a good opportunity to invest in.Trade closed: target reached
Target was reached on 17 June 2022.Note
I expect anyone who is reading my writings to know that there is nothing "certain" in the markets. Neither the %gain on stock nor "out-performance" or "under-performance". There is a risk and opportunity cost involved in both, buying and selling. Selling at any price can often result in "opportunity loss" when the stock moves higher and higher. Human psychology is a culprit here. For e.g. I post any stock which seems undervalued or overvalued to me on tradingview. When anyone makes money on that, they wont appreciate me "a single word". But when they lose or it results in opportunity loss, they are bound to blame me. I don't criticize any person, because I know their psychology has defeated them. At last, there is nothing like "easy money" in the markets. The survival of the fittest holds absolutely true here.
Disclaimer
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