Nifty -The ROAD AHEAD FOR NIFTY
The Bulls Are In Complete Control
Nifty future closed the week on a positive note. After a sharp turn around on April expiry session on Thursday.
It seemed that bulls have lost control and bears are striking back with a change in trend.
Friday bulls surprised back again when market managed to hold the levels of 11730 and moved on side up and ended the week at 11813.50
Many traders are left out in the rally because of there short term thinking and not following the trend.
Nifty moved one side in a strong trending move.
As a trader you have shorted the market or you have failed to follow a TREND FOLLOWING STRATEGY
Then i must say you are doing completely wrong and this will not help you to make any money trading in stock market.
Levels To Watch
11900 is the line of resistance, the level where previously the bulls failed. Once 11900 is sustained nifty will run sharp for 12300
On downside the first line of defense is 11715 if that is taken out with volume then we can see a correction up to 11550 going further.
So far the trend is in favor of the bulls.
Should You Be Worried For Election Outcome?
The markets are highly over bought and trading at a PE of 29 and higher which means we are already over priced.
The bubble is not yet there since the valuation of many stocks are not yet over priced.
Still you should be cautious with your holdings as i do expect a correction in markets going further after may series gets over.
I am long in markets from February 2019 and still my system is long hence i hold nifty future long,
I do keep the rollover position and write some calls to reduce the cost of carry.