First, we must complement Nooresh Merani because unlike other experts who hedge their advice to cover all sorts of contingencies, Nooresh is confident and clear-cut in his opinion.
In his latest blog post, Nooresh has conducted a masterful technical analysis of the Nifty and explained why it is destined to go higher in the foreseeable future. The essence of Nooresh Merani’s analysis is that the Nifty is in “oversold” territory and that it will bounce back with a vengeance. He has given a detailed explanation to support his thesis. He has also cited several examples from the past to prove that whenever the Nifty has plunged steeply, there is always a vicious rebound.
Nooresh emphasizes that the impending rally is “as big an opportunity” as the ones seen on earlier occasions. “Some huge returns were made post such a bottoming out” he says.
He claims that Nifty levels of 7650-7800 will be an “excellent opportunity” to buy stocks and that there can be a rebound to 8050-8150 with a max level of 8250.
Nooresh has cautioned that most investors may have developed a sub-conscious “mental anchor” of the prices that they saw of their favourite stocks on Black Monday and that this may deter them from buying stocks till those levels are reached again.
He advises that investors should get rid of such anchors. He also advises that investors should stop worrying that there may be a further dip in prices. Even if there is a dip, it will be more than made up for in the impending rally, he says.
“Time to start investing and looking for stock specific opportunity starts right now” he says in a confident tone.
Of course, we must remember that technical analysis is based on the theory that everything will progress in a predictable manner and that there will be no untoward events. If some drastic and cataclysmic event like a currency devaluation/ interest rate hike, bankruptcy etc, etc takes place, then all bets are off the table.
At this stage, if you are looking for specific stocks to buy, you can consider the top ten stocks recommended by ICICI-Direct in their latest report. A similar report has been issued by SBI Caps. These stocks are of top-quality companies and even if the mega rally anticipated by Nooresh Merani does not materialize, there may not be much to lose in the long-term!
See also: Is this the end of bull market or an opportunity for massive wealth creation?
See also: Deploy 30% of cash at current levels and rest on further declines: Experts
No investor has predicted this correction. No charts will be able to predict the limit & resistance when the sentiments in the world market is not good. When market is rangebound then technical assistance will be useful. Stocks should be invested looking at the fundamental and we need to forget the short term volatility
jhakkass!!! go fot it
7650 buy level?
anyone knows that from 9000 if got at 7650 is gud buying level
that level can be achieved
again target 8250
that too very much possible
is this BIG BUYING OPPORTUNITY
the way it was stated to fill the pockets with gold with nifty at 12000k then pockets will be full with gold
till then no n ew subscription
MAN..AMAZING ANALYSIS!!!!this is brilliant, like he predicted(Deduced from the previous index trend based on RSI),the index is coming down after the steep fall and bounce.
Big question is ,like in the past ,will there be a big rally once the current downtrend is over(as on 1st Sept 2015)??i.e the thing to watch for.
I’ll remember the RSI<28 thing for my life now.