Nifty

Let’s us start this post with reviewing the call on Nifty I gave last year 3^rd June 2015, Nifty was trading at around 8326 and my call was, “Nifty made a low of 8000 and bounced back to 8500. The charts patterns have become much more apparent since then. If we look at the first chart we can see the head and shoulder forming clearly on the index. Any breakdown below the neckline of 8000 will push nifty towards 7000 - 7200 levels.”

Nifty today made a low of 7186 and my targets have been achieved.

If we look at the long term chart of Nifty we can see that the index is having support in the range of 6800 – 7000. I think Nifty will bottom out at those levels and that should provide long term buying opportunity.

Summary:-

1.       Nifty downside target of 7200 achieved.

2.       Nifty will bottom out around 6800 -7000 +/- 5% range

3.       Long term investors should start buying stocks with 3 – 5 year horizon