WHAT TO DO AFTER BUDGET’19 & BEFORE ELECTION
️NIFTY FORMING A PATTERN OF ASCENDING TRIANGLE ON CHARTS.
🔷️TECHNICALLY BREAKOUT ON UPPER SIDE COULD BE ON CARDS IF NIFTY MANAGES TO CLOSE ABOVE 11040 DECESSIVELY.CURRENTLY NIFTY CONSOLIDATING BETWEEN 10700 TO 10960 FROM LAST 2 MONTHS.
🔷️IMPLICATIONS:
BREAKOUT ON EITHER WAY UP OR DOWN IS VERY NEARBY. NIFTY TO REMAIN RANGE BOUND AND POSSIBLE BREAKOUT COULD BE SEEN 2-3 DAY PRIOR TO BUDGET OR ON BUDGET DAYS.EITHER WAYS BREAKOUT WOULD BE VERY SHARP AND STRONG FOR SHORT TERM.
🔷️ONE COULD USE A STRADDLE STRATEGY IN NIFTY OR CAN BUY A NIFTY OR FRONT LINE STOCK WITH STRICT MONEY MANAGEMENT AND STOP LOSS OF 10700.CURRENTLY NIFTY STOP IS TRADING AROUND 10780.NIFTY AT CURRENT LEVELS LOOKS GOOD IN RISK REWARD RATIO AND ALSO STOPLOSS IS NOT MUCH WIDE AND FAR.
🔷️SECTORS & STOCKS IN FOCUS – AGRO & FARM SECTOR, CHEMICALS,TRACTOR,EDUCATIONAL, GOVT SECTOR,RAIL,HOUSING FOR ALL- PLY,REALTY
BUT KEEP IN MIND FEW Sectors SHOW RUNUP ONLY DURING BUDGET THAN LACK LUSTER FOR WHOLE YEAR.IF YOU PLAYING INDIVIDUAL STOCKS PLAY ACCORDINGLY
🔷️STREET HAS EXPECTATION TO ABOLISHING LTG(LONG TERM CAPITAL GAIN TAX) FROM BUDGET.IF THAT HAPPENS THAN THERE CAN BE GOOD RALLY.
🔷️STREET ALSO EXPECTS NO FARM LOAN WAIVER .
🔷️PROFIT BOOKING MOST IMPORTANT LOOKING AT CURRENT MACRO SITUATION ONE SHOULD BOOK ATLEST 70 TO 80% PROFITS AFTER BUDGET & BEFORE ELECTION AS PER RISK
🔷️ONE CAN GET GOOD OPPORTUNITY TO ADD QUALITY STOCKS IN DOWNFALL.
🔷️NIFTY NOT ABLE TO CROSS 11000 RESISTANCE ABOVE 11000 WE CAN SEE MOMENTUM TO CONTINUE BUT UPSIDE IS CAPPED MAX 4% TO 6% IN SHORT TO MEDIUM TERM.
🔷️AND MOMENTUM TO CONTINUE HIGHER ONLY IF BUDGET IS GOOD & AS PER STREET EXPECTATION THAN THERE CAN BE POST BUDGET RALLY AND ON FLIP SIDE IF NOTHING MUCH TO TAKE AWAY FROM BUDGET MARKETS CAN CORRECT 3% TO 5% ON DOWNSIDE.
🔷️NIFTY HAS FORMED VERY STRONG BASE AROUND 10700 WHICH WONT BE SO EASY TO BREAK ANY CLOSE BELOW WOULD TURN MARKETS BEARISH
🔷️DONT MISS CHANCE TO BOOK PROFITS EVEN IN INDIVIDUAL STOCKS ALSO
🔷️THERE CAN BE SUSTAINED RALLY ESPICALLY IN MIDCAP & SMALLCAPS IN SECOND HALF OF ’19 OR IN 2020 ONLY.
Disc- All Views expressed are personal and for study and Educational purpose only. Consult your financial advisor before investing.
WealthCreatures 