Nifty

In my previous post on Nifty written on 10^th Feb 2016, I wrote, “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.”  

The bottom in Nifty was formed 6825 levels and the markets have bounced back since then as expected. If we look at the current chart of nifty we are forming an Inverse H&S pattern and it had also broken out today. There is substantial upside from here and Nifty may go to 9000.

As mentioned in my previous post I think Indian markets will breakout and provide good long term investment opportunity for next 3 – 5 years. 

Crude oil

I am following up on my previous post on Crude oil written on 8th March 2016 in which I mentioned that, “If we look at the price of crude today, I think it had bottom out and the crude is forming an inverse head and shoulder pattern and signals a reversal. If Crude breaks above 40$ we could see 50$ and beyond very soon.”

Today crude oil made high of 49.91 and my target is achieved.  I think the current rally in crude is almost over. Crude will face stiff resistance at 50 level, what happens next is not very clear now but we are sure to see some correction in crude prices going forward.