Near Term Trend: ↑UP
Market update: Nifty had another positive session today and it closed 40+ point up at 11713.
Nifty today opened slightly positive (inspite of a massive rally in US stocks overnight) & kept trading in a narrow band and shot up in the fag end of session. In the process it again posted a 'hanging man' pattern on the daily chart. Since last 3 days market have been posting pattern which can be identified with a topping pattern now this doesn't necessarily mean that market has topped out but just shows that there is a possibility of one.
Nifty had seen a slight selloff during last hour yesterday and to open bearish possibility it needed a follow up weakness below yesterdays low but that didn't happen. Also markets didn't post a new high as well so overall it was an indecisive day of trade
Nifty PE ratio today closed at 29.24, now this is even higher than what we had in 2008 and 2018 (aug). Historically speaking whenever PE has reached 28+ we have seen a good amount of correction, now many are saying that this time the things are different and earning growth will pick up which will put PE back again at reasonable levels hence high valuations are justified. Now it remains to be seen to which extent such justifications are right.
Price action ( which is the most crucial indicators) remains in buy mode along with many other technical parameters.
Overall technically the entire rise from 10K levels today has completed 107 days which is around 280% of total time taken by previous fall ( 11750 to 10k levels). now here is one very interesting thing we noticed today.
Last year in Feb/Mar, Nifty had fallen from 11171 to 9950 at that time it had taken 38 days too ( current fall from 11750 to 10K also took 38 days) and after that market rallied from 9950 to 11750 and guess how much time market had taken to reach 11750 from 9950? exactly 107 days ( 280%) now again we have taken 107 days (today was 107th) so there is one very uncanny similarity. Again not saying what happened last time will also happen this time but one of the key rule of technical analysis is that " history repeat itself" so one should be watchful.
Happy Trading!
Market update: Nifty had another positive session today and it closed 40+ point up at 11713.
Nifty today opened slightly positive (inspite of a massive rally in US stocks overnight) & kept trading in a narrow band and shot up in the fag end of session. In the process it again posted a 'hanging man' pattern on the daily chart. Since last 3 days market have been posting pattern which can be identified with a topping pattern now this doesn't necessarily mean that market has topped out but just shows that there is a possibility of one.
Nifty had seen a slight selloff during last hour yesterday and to open bearish possibility it needed a follow up weakness below yesterdays low but that didn't happen. Also markets didn't post a new high as well so overall it was an indecisive day of trade
Nifty PE ratio today closed at 29.24, now this is even higher than what we had in 2008 and 2018 (aug). Historically speaking whenever PE has reached 28+ we have seen a good amount of correction, now many are saying that this time the things are different and earning growth will pick up which will put PE back again at reasonable levels hence high valuations are justified. Now it remains to be seen to which extent such justifications are right.
Price action ( which is the most crucial indicators) remains in buy mode along with many other technical parameters.
Overall technically the entire rise from 10K levels today has completed 107 days which is around 280% of total time taken by previous fall ( 11750 to 10k levels). now here is one very interesting thing we noticed today.
Last year in Feb/Mar, Nifty had fallen from 11171 to 9950 at that time it had taken 38 days too ( current fall from 11750 to 10K also took 38 days) and after that market rallied from 9950 to 11750 and guess how much time market had taken to reach 11750 from 9950? exactly 107 days ( 280%) now again we have taken 107 days (today was 107th) so there is one very uncanny similarity. Again not saying what happened last time will also happen this time but one of the key rule of technical analysis is that " history repeat itself" so one should be watchful.
Happy Trading!
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