Nifty trend / Nifty prediction 18th March 19
Nifty trend today was bullish for the most part of the trading day and consistent short covering was seen by traders who were selling from 10700 onwards however during the last hour of trade there was some sharp down movement today so let us look at the overall picture. Based on my Nifty prediction we should wait for trend reversal to short sell.
Sentiment We have seen some bullishness in my sentiment charts but we are not yet there where the entire market is at the euphoria stage no doubt that the sentiment has got significantly bullish from a few days back however the readings are not yet the euphoria stage. So do watch out for euphoria stage because that’s when stock markets top out so that could still take a few more days for that to happen but we will use this indicator as a secondary confirmation indicator not as a primary one so keep in mind that this indicator cannot be used in isolation and has to be combined with other studies. Valuations From a broad stock market perspective is at an all-time high once again. Yes valuations have now closed at almost the highest point for Nifty 50 so we are currently trading at around 28 trailing PE so generally the markets have not gone much beyond this levels however there could still be some more upside on the pe front and there is a possibility of expansion in the very near term however keep in mind that markets have not sustained for longer durations at such hefty valuations reasons have varied but eventually Nifty did not sustain at hefty valuations so if you are an investor then be sure to be invested only in deep value stocks and I say this because there is a part of the market that will be largely unaffected in the subsequent down move and the reason is that they are already at deep value but if you are holding anything other than deep value then be careful.
From a technical perspective currently the trend remains up and till the point in time we do not see a reversal we should not be moving into shorts but there are some other strategies which have to be deployed now which we have updated our clients about however till the trend does not reverse we do not recommend going short regardless of the other remaining factors.
From a time cycle prediction also we are nearing some important astrological changes so though these changes are still a few trading days away we have a very high correlation to Nifty reversing its trend around those astrological signatures so wait patiently for a few more days because the orbit of influence once in effect it is at that point in time that we should be very alert about a trend change till that point in time we should not be in a haste to take a short sell call.
Good Trading to you!