NIFTY Channel Breakout!!
Authored On: 02-Apr-14
Last Modified: 02-Apr-14
Amazing last few days that they were! Gravity defying markets where each and every stock that is fundamentally good is going up and at the same time, those traders' stocks seem to be nicely confined!
While there are many guesses and calculations by many as to where Nifty will go, here are two bytes from us. Above graph clearly shows few things that are worth noting down. . .
1> That Nifty longer term channel is clearly broken on up side on closing basis. See red dotted lines and how end points in Nifty breaks that on upper side.
2> That there is clearly picture of higher highs and higher lows if we channel out the relatively shorter term Nifty. The up move is further confirmed.
Question remains if that will end up into start of new bull run. We see that there is plenty of room for up move as seen from shorter term channel. Clearly for new bull phase to be confirmed, Nifty has to complete path AB as shown above, with possible correction that will happen has to end at any such point C, being above the original longer term channel. The possible next move CD is then super-confirmed start of new bull phase. And if Nifty takes path shown by smaller red arrow and breaks the longer term channel on down side, then the chances become dim. While more complex analytics has to go in, it truely seem fantastic, where all past 15 days, we had each day where at least few stocks were buzzing! Even at peak, each day had new opportunities! We liked RANBAXY, JMFINANCIL, TUBEINVEST, HELIOSMATH, IBREALEST, JPINFRATEC, SSLT, HINDZINC, MONNETISPA [all NSE symbols] and many others too! What were your winning picks!? Hope you did not miss!
Next week, we will see how to position us for General Election results in May!