Why Nifty heading towards 11000 – A Technical perspective

Why Nifty heading towards 11000 – A Technical perspective

Three years back ( 2014) , even before the New Govt (NDA) was formed ( April 2004), we have set aside a target for Nifty  10460 on longer term and around 8100 for short term. The report was  published on April  18 2014. You may read our old report at http://www.einfomet.com/indian-market-at-sweet-spot/

 

2014-2017 – Story So far

  • Nifty has achieved our target of 8100 much before we expected ( 2014 itself)
  • 2014-2016 – was a year of consolidation.
  • 2016-2017 – No Direction , & was mostly was in the range. 6800-9000 was the range.
  • The monthly chart of nifty in an up channel for last 8 years (picture enclosed).
  • The fall from the highs of 2017 (Sept) 8960 to low of 7893 in December was just a normal 50% retracement of the short term rally (6800-9000).
  • Short term we could see correction & in this correction , one could accumulate the stocks
  • On the way down, 7894, the bottom made in December 2016, is the major support to eye, with the stop-loss of which fresh/existing investments should be held on to.

 

Now in the monthly chart we have seen both inverted Head & Shoulders pattern & or Cup & Handel formation & the range is around 2000 point. The breakout point is between 8950-9000. A monthly close above this range can take nifty to 9000+2000 =11000 level by next 2 years.

 

 

 

 

 

We will also try to cover few sectoral Indices & sector to be invested in shortly

 

 

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One Comment to Why Nifty heading towards 11000 – A Technical perspective

  1. […] bullish & this correction in the market to be used to built portfolio. Read original report at http://www.einfomet.com/why-nifty-heading-towards-11000-a-technical-perspective/ (published on 18 Feb […]

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