In my previous post on 9th may 2014, I wrote “Hence I would say that if market stays at these levels till next Friday two things are certain.
1. Narendra
Modi will be elected as the next prime minister of India
2. Nifty
will move towards 7200 – 7500 levels in short period of time.”
Both my predictions have come
true. Indian market has hit a high of 25200 today. Sensex will move up by 3000
points in a matter of five days. I was expecting that the move will happen
after the results will come, but I was also surprised as the up move happened before
election results were declared.
If we look at the given chart of
Sensex, it made a high of 25375 and had hit the upper end of the channel. I am
not expecting a breakout of this channel anytime soon. As per my understanding market should spend considerable
time consolidating at these levels before they finally decide to break out. Any
breakout of this channel will result into index moving up to 45000 to 60,000 in
next 5- 7 years.
Summary:-
1. Markets
will face resistance at 25500 – 26000 levels
2. Market
should consolidate at these levels for next few months
3. Once
markets break out above 26000 - 27000, we will see index doubling in next few
years.
4. We
are in a long term bull market.
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