Nifty 1W Technical Analysis & CommentaryIndian Stock Market Update
- Nifty and Bank Nifty have been plunging for a week, and we are witnessing major sell-offs.
- The primary reasons behind the drop are: 1) All indices were overstretched, 2) Foreign Institutional Investors (FIIs) are pulling out their money and moving it elsewhere, and 3) Institutions are booking profits across the board, trapping late buyers who fell for fear of missing out (FOMO).
- I am sticking to my plan, which I always follow. I won’t make a single penny’s long-term investment right now unless I see significant flash crashes. Market premiums are still high, and these influencers are unhelpful; when the market is rising, they talk about even higher highs, and the moment it turns bearish, they start discussing defensive plays. Your focus should be on understanding your wealth profile first, assessing asset allocation, and evaluating your liquidity. What if the market falls more?
- The market will soon show us a dead cat bounce, which will be an exhaustion rally; don't fall into that trap again.
- I will start swinging again once the index begins to stabilize and I see setups forming that meet my criteria and rules. Until then, I will remain on the sidelines, read books, and focus more on the crypto market.
- For now, fold your chips, let the market do its thing, and wait for it to normalize instead of forcing setups.
