ALERT !!!

Since Dec-Jan we  had bullish bias for Indian markets, but this week's closing price is giving us warning. Now we will say that the TREND is sideways from long term perspective.UNLESS NIFTY GIVES WEEKLY CLOSE ABOVE 5380-5400 THE POSSIBILITY OF RESUMING UP TREND IS LOW.

AT THE SAME TIME IF IT GIVES WEEKLY CLOSE BELOW 5135 POSSIBILITY OF FURTHER DOWNSIDE ARE HIGH.

If it gives weekly close below 5135 what are the possibilities -----
(1) It will go below 5135, weak hands will be thrown out of the market, and then it will resume it's up trend.
(2) It may make base formation around one of these levels 5000-5050 or 4800 or even test Dec 2011 level of 4530, and then once again start moving up.
(3) In worst case scenario it may go below 4530, will fill the ELECTION GAP created in MAY 2009 ( i.e. 3600-3900 ) level.
(4)will  remain sideways between 5000 and 5400 for few more months, and will resume up trend.
(5) will trade between 4500- 5600 for 2-3 years, and then resume up trend. THIS WILL BE MOST REWARDING SITUATION FOR LONG TERM OR S.I.P. INVESTORS.


SO WHAT SHOULD BE DONE ?
PLAN OF ACTION -------
( A ) If u are trader --- follow your system, be disciplined and follow stop losses strictly.
( B ) If u are short term investor ( for few months to 1-2 year ), exit equity if NIFTY gives weekly close below 5135, and invest when there is clear cut up trend according to technical analysis.
( C ) If you are long term investor ( more than 10 years ), then hold on your existing investment and continue / start investment via S.I.P. route in quality stocks or few good mutual funds.

NOTE --- WE ARE NOT GIVING DETAIL TECHNICAL ANALYSIS FOR THIS VIEW, TRYING TO EXPLAIN IT IN SIMPLE WORDS. WATCH THE LEVELS GIVEN ABOVE, AND SEE HOW NIFTY REACTS AROUND THESE LEVELS, IT WILL BE INTERESTING.

AS USUAL THIS IS OUR PERSONAL VIEW AND VISITORS SHOULD DO THERE OWN ANALYSIS BEFORE MAKING ANY DECISION. 

DISCLAIMER: This Blog is meant for sharing our trading and investment ideas only and no calls to be taken as trading recommendation. Visitors please do your own research or consult your advisers for safe trading, investing.