Wait for Investment opportunity_ Nifty50 medium term analysisNamaste!
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.
