Nifty touched some very important support lines today and after going down in the wee morning it bounced back and bounced back hard yo! Most importantly it gave a closing of a very respectable level. All the data for now like Inflation Data, Ukrainian War seems, has been absorbed right now. So instead of getting absorbed by the global factors lets just stick to facts in order of their effectiveness-
1. Oil. The bull run in oil although seems to be "supply chain" issues there is a much broader thing at play here. With even U.S asking Venezuelan oil for their own country. If the oil prices continue rising like this The govt will have to intervene and regulate the price in order to help the economy. It would definitely be preceded with a dip in the market and then reversed upon the news factor.
2. Precious Metal: The most important metal for now to keep your eyes is Gold. There already is sustained bullishness on the charts for gold If it manages To break out then we are surely in for a reversal of Cha-ching into metals and commodities. Gold is inversely proportional to the stock market. If gold starts performing then its bye bye to the gravy train the incessant bull market that has been for so much time. Overvalued companies and IPO
s of companies that are yet to list their first Quarterly Profit. Valuation would be the key. Buying the dip would just be stupid in this case, as the dip would just keep dipping and the more it dips the more fearful people would be.
3. All eyes on LIC. its very important if the shares of such an important company get listed at discount or dumps or rises, as it not only would reflect the faith of the Institutional Investors both domestic and international but would be a great forecast of the upcoming market and its direction. LIC would decide if the music is about to slow down or just stop.
And if the music does decide to stop so to speak, we may see spike in Gold, Spike in housing prices (residential) realty sector, Mining companies, and food processing companies. But not before a Frightful Red dip in the market where seeing nifty going to -20-30% would be the 'new' normal. Interest rates and banking decisions would further propel the market towards value. Buying on dips would be good for gold in such a case. Or Platinum. Or Silver. Or anything but stocks.
1. Oil. The bull run in oil although seems to be "supply chain" issues there is a much broader thing at play here. With even U.S asking Venezuelan oil for their own country. If the oil prices continue rising like this The govt will have to intervene and regulate the price in order to help the economy. It would definitely be preceded with a dip in the market and then reversed upon the news factor.
2. Precious Metal: The most important metal for now to keep your eyes is Gold. There already is sustained bullishness on the charts for gold If it manages To break out then we are surely in for a reversal of Cha-ching into metals and commodities. Gold is inversely proportional to the stock market. If gold starts performing then its bye bye to the gravy train the incessant bull market that has been for so much time. Overvalued companies and IPO
s of companies that are yet to list their first Quarterly Profit. Valuation would be the key. Buying the dip would just be stupid in this case, as the dip would just keep dipping and the more it dips the more fearful people would be.
3. All eyes on LIC. its very important if the shares of such an important company get listed at discount or dumps or rises, as it not only would reflect the faith of the Institutional Investors both domestic and international but would be a great forecast of the upcoming market and its direction. LIC would decide if the music is about to slow down or just stop.
And if the music does decide to stop so to speak, we may see spike in Gold, Spike in housing prices (residential) realty sector, Mining companies, and food processing companies. But not before a Frightful Red dip in the market where seeing nifty going to -20-30% would be the 'new' normal. Interest rates and banking decisions would further propel the market towards value. Buying on dips would be good for gold in such a case. Or Platinum. Or Silver. Or anything but stocks.
Comment:
Always place your stop losses prior to taking a trade set your risk. May the best trader Win.