Nifty Consolidating to break out in time!

The Nifty has tested everyone’s patience. And may well continue to do so for more time.

From 10th July 2017, it’s in the range of 9,684 to 10,182 a range of just under 500 points. The band itself represents a BUYING opportunity – especially for selected stocks. The Nifty ETFs may also be a good option for lower risk-takers who want to hold for the long-term (i.e. greater than 1 year).

The reason I say it’s waiting to break-out (up) is that it made a double bottom at the 9684 level. On 11 Aug and at 29th Sept. While purists will say it was 9685 and 9687, I’m more a pragmatist. In this age of machine-trading, with manual day-traders, two points on a scale of 10,000 makes for ‘in-built calculation errors in computing the index!

Screenshot 2017-10-11 10.01.06.png

For those who want to play it safe, wait for the breakout above 10,182 (black horizontal line). OR for those who are pessimistic looking at TV coverage, wait for a Break-Down below 9,684.

But I’ll remind investors of an old adage in the stock markets: Markets climb walls of fear, and puncture balloons of euphoria.

@jsvasan

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