We have had many rallies and big falls since Oct 2021, when the correction in markets began. As put up in the past, it has taken the form of an expanding triangle. Now with current rally, we seem to have broken out on the upside in Nifty charts.
In the near term, 18000-18100 (rounded off) as marked by dotted lines in the chart is the key resistance. Once that is cleared, we could be looking at higher levels.
The market preference for large caps and small caps keeps on changing from time to time and often lasts few weeks and then the whole equation turns on its head.
These are tricky times for traders, who try to keep trading, as they are often caught on the wrong foot. Investors who can pick good companies are relatively better placed. And there are plenty of opportunities in sectors like Banking, Defence, Infra, etc spaces for trading/investing.
Till now, the prudent thing to do has been to raise cash levels once we approach 18000 and start deploying capital once we go below levels of 16500 or so. But if we are going to break out on the upside, then it may make sense to stay invested inspite of being above 18000. Its a tricky call for those wanting to time the markets.
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