Indices
Tuesday, June 10, 2014
INDICES:INDICES:
ITS JUST TRAILER, PICTURE IS STILL INCOMPLETLE:
IT’S JUST BEGINNING; IT HAS LONG WAY TO GO AHEAD:
As expected, it turned out to be REAL BULLS based on evidences found. The question is now what??
It looks like just beginning & it has a long way to go ahead for unbelievable higher levels targets in medium to Long term (3-5 Years period) as per chart attached with explanation in detail written below based on wave counts.
As Market sustained above breakout levels & trading at all time high levels, so based on yearly charts of both sensex & nifty, it looks like wave-3 of Indian Bull market.
Few other observations as mentioned below are also the reason behind this view.
Observations:
1. Market successfully sustained at higher levels after giving breakout from 5 year consolidation phase of time wise Bear market (i.e. - 2008-2013).
2. Many of the stocks has reversed from their life time lows esp. in midcap/small cap segments & formed Inverted head & shoulder kind of Bullish pattern on charts & given breakout with good volumes indicating long term bottom reversal.
3. In recent rally, we have seen participation from each & every sectors & stocks of those particular sectors with good rotation, its strong evidence of LONG TERM BULL market.
4. We are not getting corrective retracement more than 23.6% to 38.2%, its ideal sign of Bull market in which we will not get much more deeper correction till it completes larger degree 5 wave advance (i.e. on weekly or monthly degree).
5. There is no possible Bearish wave counts are available at current levels of market.
Midcap & small cap stocks are going to further out perform in this rally. These Indices are still trading below their all time high levels of 2008. It has still much more potential to go higher at current levels of market to catch up with main index.
Any kind of corrective retracement is buying opportunity to participate in this Bull market rally. I am expecting target1 in the range of 40000-41000 levels & 12700 levels on sensex & nifty respectively in medium to long term (3-5 Years period). It can further go till 46000 levels on sensex & 14000 levels in case of extension.
21108 levels on sensex & 6338 levels on nifty are strong support/reversal levels for this view.
One should BUY stock specific at current levels or any kind of decline or consolidation till TREND Reverses. As anticipated, Equity turning out to be wealth creating asset class for Long term Investors. One should follow & Trail Trend with discipline & patience to earn good returns in this Bull Market.