Stunning rally in NIFTY from 9450 to 9900. Deeper correction ruled out.
Nifty had rallied from 9350 to 9700 in the last week of May and First week of June 2017.
Post hitting fresh New highs, NIFTY consolidated 9600-9700 and had also corrected to 9450. This happened due to Technical reasons. The weekly charts were looking over bought.
Post 3 week correction and consolidation from NIFTY. NIFTY had rallied from 9450 to 9900, solid 450 points in last 2 weeks. Strong buy signal was generated above 9600. We expected a slow move in the NIFTY towards 10250-10500 in 3 months, but NIFTY rallied swiftly with Global clues to 9900.
Daily charts have entered Overbought zones, there is neutral view in weekly charts, so we are still positive on NIFTY. The correction is expected to be shallow, Maximum towards 9720. Earnings season to move the market in the positive direction. Also the way the sectors complimented each other during the rally was good and positive.
Hold fundamental good stocks, book profits in cyclic stocks. Hold cash to buy on dips.
We have a target of 10250 with SL of 9700 for the NIFTY. Post side way consolidation, we expect the NIFTY to rally another 400-500 points in next 2 months.
We expect Financials, FMCG and Metals to continue making new highs, while PSU Banks, Pharma and IT to see small rally to fresh 3 month or 6 month highs to support the rally.
I am Admin, Gale.in. I am into investing and trading for last 7 years. I love sharing my knowledge and to educate people. I write articles regarding stock market to enlighten people about stock market and also share stock ideas at Gale.in to ensure retail investors of decent profits. You can contact me at email@example.com for stock queries. Have a wonderful time at Gale.in.