October usually is a month wherein markets correct and it is more so true in the second half of october, wherin the corrections are swift. Chartically speaking, we have been set for a correction many times in September, but each small hint of correction in September was bought in with full force and instead of the markets correcting, they just went up. This led to a huge difference between nifty and futures of around 40 points. This kind of difference has not been seen for a long long time. Also the put-call ratio in the market in september had reached levels of 2. Usually markets have a peak of 1.8.
Now after some time the charts are showing the correction patterns again. If Nifty starts to break then its 10 days of nice correction and we have a stop of around 5600. If not then theres no stopping nifty from breaking the all time top. But the odds are stacked for a correction now. It might be prudent to short with stoploss in place. If markets correct and reach 5600 then it would be great time to buy for long term investment.
1 comments:
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As such we all had seen 5% correction in bse so this is the right time for the investors to take positions for handsome returns,no doubt everyday the market is giving opportunities to
make money provided you are taking timely entry and exit from the positions
Regards
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