In our last post we mentioned about the nifty losing momentum at all time highs but the market has made a comeback above the levels we mentioned to be important and gave a 1% rally from those turning levels already.
Here is our fresh take on the Nifty for the medium term time frame.
We have seen for the past couple of months a rally with healthy corrections starting from Mar 2016 and we have almost seen a return of 25% in a year in the benchmark index NIFTY and the stocks have almost all doubled from the levels that were in March 2016 except a very few stocks.
Though the majority are feeling that the stocks and index had a huge run up and its the time for a correction the market is behaving insane and making new highs every week by spending time consolidating more rather than correcting this is the support that the market is getting from bulls.
The charts are telling the market has just broken out and is ready to start the rally to much higher levels as you can see from the chart below a cup and handle breakout chart in nifty has just occurred and if this materializes into a rally we can get a 15% return in the medium term of 6-8 months.
Though the market valuations does not seem attractive keeping in mind the past rally but the story that is unfolding for India in the current global economic conditions can't be understood in simple terms.By this i mean in relative terms the global investors are showing interest in Indian markets and this is evident from their fund inflows for the past one year and this is expected to continue for the intermediate term which can take the markets at least 15% higher from the current levels.
Here is a Research Report from Motilal Oswal expressing fundamental view on nifty at current juncture
Click Here to View the Report
Here is our fresh take on the Nifty for the medium term time frame.
We have seen for the past couple of months a rally with healthy corrections starting from Mar 2016 and we have almost seen a return of 25% in a year in the benchmark index NIFTY and the stocks have almost all doubled from the levels that were in March 2016 except a very few stocks.
Though the majority are feeling that the stocks and index had a huge run up and its the time for a correction the market is behaving insane and making new highs every week by spending time consolidating more rather than correcting this is the support that the market is getting from bulls.
The charts are telling the market has just broken out and is ready to start the rally to much higher levels as you can see from the chart below a cup and handle breakout chart in nifty has just occurred and if this materializes into a rally we can get a 15% return in the medium term of 6-8 months.
Though the market valuations does not seem attractive keeping in mind the past rally but the story that is unfolding for India in the current global economic conditions can't be understood in simple terms.By this i mean in relative terms the global investors are showing interest in Indian markets and this is evident from their fund inflows for the past one year and this is expected to continue for the intermediate term which can take the markets at least 15% higher from the current levels.
Here is a Research Report from Motilal Oswal expressing fundamental view on nifty at current juncture
Click Here to View the Report
Though nothing can be predicted with 100% certainty the bullish view expressed here has a high probability.
The idea here is to just ride on the trend move by keeping a stoploss.
Our Idea is to Buy the market on every dips with stop loss placed at 9018 spot levels for the short term (1-2 months ) and 8800-40 levels for the medium term. (6-8 months)
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