Nifty corrected from 11024 levels on 1st Oct 2018 to 10316 Levels on 5th Oct 2018.
As expected it even broke 200 DMA which was placed around 10770.
There was no stoppage to bad news flow one after another.
We can expect some Relief Rally or bounce from 10165 levels on Nifty.
The last hope of Ray for Nifty is 9951.Its very Strong Support and its March lows from where Nifty Reversed.If those levels are broken Then there can be fresh downtrend, which can take Nifty to much Lower levels also.But lots of Buts & If’s in between?
Let’s wait and watch & hopefully it should take support.
At sub 10000 levels all major negativity is priced in If this is just a normal correction.Than we would bounce from those levels or Get Ready to bear more pain.
But currently no technical levels is working.Markets are ignoring all positives news flow.
Markets are deeply oversold & can see sharp bounce back.
Till time we dont cross 200 DMA markets are sell on rise.
This can be time wise correction which can last from 3 to 12 months or even longer.
The biggest threat to Markets are
- Rising Dollar
- Brent crude above 85$
- Weak Global cues.
- Trade war.
- Few state Elections lined up in nxt 2 months.
If all above pressure continues.Than we can see much lower levels even from 9940.
One should wait on sidelines to buy quality stocks only after markets stablise Or Do investment only in SIP.And If trading it should be with strict stop loss.
In each correction or Turmoil there are winners.we suggest Stocks that has less Debt,Good Promotors Quality, No Governance issues,Capex planned or Done,Growth in EPS,Dividend Paying,Return on Equity above average,Promotor holding or Buy back of shares.
Disc – All views expressed are purely for educational & Study purpose only.
Consult your financial advisor before taking any position.