? MARCHING TOWARDS 5950, 6175,6300

NIFTY WEEKLY CHART

Last week NIFTY after consolidating in tight range of 5550-5800 almost for 8 weeks finally gave breakout from flag pattern as shown in the chart.

The target for this flag pattern break out comes to be approximately 6275-6300. Whether it will reach this target ? Frankly speaking we don't know. But we will follow charts, AND   as of now there is possibility of it may target 6275-6300 or eventually it may make new life time high. The hurdles for this are shown by 3 red lines in above chart which are at level of approximately 5950, 6175,6300. NIFTY may start correcting/ falling from these levels, but we will see for reversal signals on chart.

As of now long term investor can hold his equity portfolio with stop loss of weekly close below 5548.35

From Dec 2011 on this blog we are repeatedly advising long term investor to buy. In our last post on 21 Oct we have clearly mentioned that "  This may be one more additional opportunity to add for long term investors. In this down trend NIFTY may correct up to 5450-5550, which if comes will be good level for new investment / addition for existing investors. " ( see this link HOLD ON ). NIFTY taken U turn after making low at 5548.35.

Those who have missed the bus can enter now ? Tough question but the answer is if they are willing to take /  afford risk of  7-8 % capital erosion, then they can buy quality stocks/  good diversified equity mutual fund with strict stop loss of weekly close below 5548.35. In simple words if it gives weekly close below 5548.35 you should exit without second thought and wait for next opportunity.

For those who are interested in reading more about FLAG PATTERN here is the link FLAG PATTERN

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