Nifty: Caution ahead...!!!
מעודכן
Nifty
CMP 9685
Is this the real life?
Is this just fantasy?
Caught in a landslide,
No escape from reality
Open your eyes...
Many small caps are up 5-15% today.... Is this a realty or just an illusion that all is well...
Should one jump in now or is it time to book profits...???
Volatility index reading of 10.73 is the only thing that's supporting the market
Otherwise I'm little skecptical though especially when I look at these set of numbers below...
As on 21-June 2017
Nifty Price to Earning ratio : 24.31
Dividend yield : 1.11
Source NSE website
Nifty PE reading above 22 is considered very expensive
Dividend yield reading around 1 is considered markets to be expensive and a reading above 2 represents markets to be at cheap valuations)
So given the set of numbers, I could be wrong and markets can remain up (due to less volatility), but I have my reservations whether to believe in this up trend or on the contrary believe may be time is ripe for some correction now...
On Technical chart front
-We observe a case for a double top...
- on daily charts we have seen 20 days of consolidation so far in 120-150 point range ... and 21 is an important Fibonacci number where we can expect some change in pattern and may be a breakout of this consolidation is on the cards...
We have seen one reversal taking place earlier after 21 days of consolidation...
Will we see another reversal...???
Only time will tell...
Enjoy the up ride till then...
But do keep your eyes open...
Review your trading plan
and plan your trade accordingly...!!
Take care & safe trading...!!!
Do write in your views, thoughts and let me know what u think of
CMP 9685
Is this the real life?
Is this just fantasy?
Caught in a landslide,
No escape from reality
Open your eyes...
Many small caps are up 5-15% today.... Is this a realty or just an illusion that all is well...
Should one jump in now or is it time to book profits...???
Volatility index reading of 10.73 is the only thing that's supporting the market
Otherwise I'm little skecptical though especially when I look at these set of numbers below...
As on 21-June 2017
Nifty Price to Earning ratio : 24.31
Dividend yield : 1.11
Source NSE website
Nifty PE reading above 22 is considered very expensive
Dividend yield reading around 1 is considered markets to be expensive and a reading above 2 represents markets to be at cheap valuations)
So given the set of numbers, I could be wrong and markets can remain up (due to less volatility), but I have my reservations whether to believe in this up trend or on the contrary believe may be time is ripe for some correction now...
On Technical chart front
-We observe a case for a double top...
- on daily charts we have seen 20 days of consolidation so far in 120-150 point range ... and 21 is an important Fibonacci number where we can expect some change in pattern and may be a breakout of this consolidation is on the cards...
We have seen one reversal taking place earlier after 21 days of consolidation...
Will we see another reversal...???
Only time will tell...
Enjoy the up ride till then...
But do keep your eyes open...
Review your trading plan
and plan your trade accordingly...!!
Take care & safe trading...!!!
Do write in your views, thoughts and let me know what u think of
הערה
Target 9450-9430 rangeעסקה פעילה
From 9685 to 9630
Sold right at the top....
Hope it helped...
Take care
עסקה פעילה
As suggested earlier too... Crack appears to be have become more wide and prominent now...
Nifty is eventually giving a weekly close below 20 day EMA (currently at 9594)
& Looks likely to close near day's low...
From 9685 to 9570
That's 115 points for the taking so far...
Do book partial profits by day's end...
Enjoy your weekend...
Happy trading...!!!
עסקה סגורה: היעד הושג
Target achieved... As suggested in comments below Profit booking has been done today at 9480 levels...The idea was very clear. We were trading for Nifty to test 50 day EMA which it has done today...
Do also read an earlier post
Hope it helped in capturing major chunk of 200+ points drop in Nifty
Enjoy the monsoon... :-)
Take care & happy trading...!!!
כתב ויתור
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