“Achhe Din aayenge” had been most chanted slogan around India Since 2013 but now actually “Achhe Din aa Gaye” in last two months. Though Demonetization has been criticized by most the population of India but thats because short term pain they went through during Nov-Dec. But as saying goes “सब्र का फल मीठा होता है” , we as a responsible citizen of India should wait for Demonetization’s fruitful results in long term. Few of the fruits have started ripening such as economy outperforming other developed economy, decreasing Indian CAD, rising digital transactions, decreasing bank rates, rising tax payers, rising tax slabs, increased government spending on infrastructure, liberalized FII norms, passing on benefits to farmers and counting…So actually we are moving towards a phase where our each day would be labelled “Achha Din” and credit will go to citizens of India!
So coming back to markets and particularly to Nifty, we are sensing a strong pattern on Monthly time frame…..
As you all could notice in the chart above, circled candles symbolize a Morning Star pattern which is bearish reversal and being on monthly chart it has strong significance. But investor to get confirmation, we need to hold 7900 level for next two series. Looking at other indicators on Monthly chart, we can be sure of buying on each dip for next few month holding
Strategy for investors: Buy on each dip with stop loss of 8200!
Coming to short term traders, i had a target of 8720 which was just achieved before closing on Budget day.
If you look at daily chart above, we are in overbought zone and nearing to resistance line of the channel but that doesnt mean we will resist for cent %. If the momentum is still strong on stocks, we may still get 300 points rally this series as indicated by option data. So for a fresh position its risky but still may go with a a hedged spread above 8725 tomorrow.
Strategy for Traders: Hold existing longs with trailing sl of 8530 with upside tgt at 8980 and for fresh buyers go long on PSU Banks (Preferably SBIN tgt 290, BoB tgt188) with a hedging of 8500 PE.
See you guys until we kick out 8980 or slip down 8530..!