NIFTY Sep Third Week
Updated
So the markets started falling as projected last week. I detail below my projections for next week.
Long Term: The uptrend is intact. The fall in the market is the standard correction after any rally. This particular rally had started in early August. We are presently in time of closure of a number of rallies. The early Aug rally was a part of another rally that started mid-July. The mid July rally was itself a part of another rally that started end-June. And so on an so forth going all the way to Mar end when the lockdown was announced. We seem to be in the culmination of the rally that started in mid-July. The market rose by around 900 points in this period. So the correction should be of proportionate scale (though it might not take as much time). The closure of the uptrend that started end-March is still some time away though.
Medium Term: In the medium term, the uptrend that started end-June would come to an end. This would mean that the market would decline. To upto 10,900 levels.
Short Term: In the short term, it looks like the zig zag correction is over. This is wave 4. Wave 2 was simple. So wave 4 would be complex. That could mean another flat correction. But after the correction the, market would start to decline again (which is the scenario explained in Medium Term section). Honestly, I am not that proficient to conclude when will the flat correction be over. It could be over next week or the week after that.
So how would I trade this? We already have an open position at 11,358 which is running a profit of around Rs. 8,400. Yo can choose to book this profit. I expect this to return to loss in the coming one or two weeks. If the complex correction gets over in the week, I recommend buying the index again. At around 10,900 levels. And then wait. Stop Loss 10,700 (Loss of Rs 15,000). Profit Booking 11,500 (Profit of Rs. 45,000).
As alway, I might be right. I might be wrong. I am always learning. Trade at your own risk.
Long Term: The uptrend is intact. The fall in the market is the standard correction after any rally. This particular rally had started in early August. We are presently in time of closure of a number of rallies. The early Aug rally was a part of another rally that started mid-July. The mid July rally was itself a part of another rally that started end-June. And so on an so forth going all the way to Mar end when the lockdown was announced. We seem to be in the culmination of the rally that started in mid-July. The market rose by around 900 points in this period. So the correction should be of proportionate scale (though it might not take as much time). The closure of the uptrend that started end-March is still some time away though.
Medium Term: In the medium term, the uptrend that started end-June would come to an end. This would mean that the market would decline. To upto 10,900 levels.
Short Term: In the short term, it looks like the zig zag correction is over. This is wave 4. Wave 2 was simple. So wave 4 would be complex. That could mean another flat correction. But after the correction the, market would start to decline again (which is the scenario explained in Medium Term section). Honestly, I am not that proficient to conclude when will the flat correction be over. It could be over next week or the week after that.
So how would I trade this? We already have an open position at 11,358 which is running a profit of around Rs. 8,400. Yo can choose to book this profit. I expect this to return to loss in the coming one or two weeks. If the complex correction gets over in the week, I recommend buying the index again. At around 10,900 levels. And then wait. Stop Loss 10,700 (Loss of Rs 15,000). Profit Booking 11,500 (Profit of Rs. 45,000).
As alway, I might be right. I might be wrong. I am always learning. Trade at your own risk.
Trade active
And we got an entry sometime back!
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