Indian markets - a panoramic chart analysis.

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Indian benchmark indices are in a strong uptrend for past many weeks. But are we going to see this trend continuing? I predicted that markets will touch 9000 three months before Modi government’s victory in 2014 in another article in this blog based on the PE valuation of Nifty.

Coming to my view, markets are at a juncture where they can make or break. On PE count markets are trading at a PE of 23.62 times. The all-time high PE was around 27 89 somewhere in 2008. Markets witnessed a rally from 4531.15 levels to 9119.20 levels. It retraced by exactly 50% of this rally and bounced with a vengeance. Again the magic of Fibonacci numbers. After testing 8968 levels in this rally markets again retraced nearly 50% of this second rally and bounced back. If we see the broader chart patterns of nifty there is January 2008 to March 2014 followed by a breakout and a second cup and handle pattern is in the making since March 2015. The handle for this pattern is in the making and the breakout for this pattern will be a closing above 9120 levels. This pattern will be void if market comes below 7890 levels. 

Displaying NSE Nifty monthly.JPEG

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