10/06/2024 : Must say, it has been a roller coster ride for NIFTY in last week. NIFTY and all other Indices have seen extreme pessimism and extreme greed within a span of 2-3 trading sessions. And now we are sitting at the top end of NIFTY 50 where the key question arises. Is it going to go up despite a weaker mandate? Or there are chances that profit booking will sway hold of the market? Let’s figure it out
In my previous posts which you can read by clicking at these two links – Link 1 and Link2, I have explained that 23400 is the crucial level for NIFTY. And once it stays above 23450 to 23500, then it will prepare itself for another rally that will logically culminate at around 25000. I have also suggested to book profits only when #NIFTY reaches aroudn 24700.
Right now, the key constituents of the market like #Reliance, #HDFC, #ICICI and other stocks from IT sector are all looking strong. Combined with the fact that markets are also waiting for the FIIs to join the party again once interest rate scenario becomes clear,clearly market direction is up.
But in the worst case, what should be NIFTY level beyond which we should sell off? Simple answer is, you must wait, unless you are in an emergency to withdraw funds. For such scenairos, you must have a cusion of debt funds or simple FD which you can break out to get the emery funds. But you must sell in equity only when it has achieved the levels on upper side. And if you can stay, you should have long term confidence in India story.
Now what next for the Nifty in these 2-3 weeks of June? For sure, it is going to see consolidation first with the hurdle of 23450. Next hurdle would be around 23950. I am expecting no big moves until budget at least, or until we get positive news on the interest rates at some point of time. For, mofe details, read on my analysis here
Comments are welcome!
