.: Technical view by Nooresh

Thursday, 2 May 2013

Technical view by Nooresh

Nifty at 6000. Book profits does not mean Bearish but opportunistic

Posted: 02 May 2013 12:19 AM PDT

Just a few days back a lot of people on the street were highly skeptical and outrightly bearish with reasons ranging from politics and macro economics.

Majority of them mentioned various different levels.

We stood out with our strategy and kept mentioning to accumulate the dips from 5600.

The first post mentioning a few stocks and nifty to show positive divergence.

http://www.nooreshtech.co.in/2013/03/nifty-time-to-watchout-for-positive-divergences.html

The next major post mentioning that its time to be greedy and a simple buying strategy of Nifty bees would have also given a 8-10% return in less than a month.

http://www.nooreshtech.co.in/2013/04/be-fearful-when-others-are-greedy-and-greedy-when-others-are-fearful-niftysensex-technical-view.html

This was the special report – Special Report – Equities – Get Ready for a Bright Future Special Report – Equities – Get Ready for a Bright Future

So now we stand at 6000 – Up 10% from lows on Nifty and 15% up on Bank Nifty.

For all the people who mention Sell in May and Go Away need to have bought in April. If you acted on our advise its time to take profits fully or partially. Also sitting with the investments tight will also be of if one can digest a 200 points dip on Nifty.

Does it mean am bearish on the medium to long term ? No

But its always good to stick to risk-reward entry points which is no more exciting.

As mentioned before the opportunity at 5500 was equivalent to one at 4500/4800. In the same way at 4500 nobody could see 5600 and 6100 at 4800 but the moves were not linear. ( we got superb opportunity again at 5200-5300 to trade for 6000 – see this post in August – Forget the Past when we turned extremely bullish at 5200 – Forget the Past – http://www.nooreshtech.co.in/2012/08/analyse-india-forget-the-past.html )

So at 5500 we may not trade for 6500 but at 6000 its time to wait for the next big opportunities.

The trend remains bullish given the break above 5975 and we may now wait for some more days of closing.

The midcaps seem to be an interesting space and we believe next strategy should be to be on lookout for quality midcaps. Will try put out some interesting investment picks if possible. One we have gone into is Aarti Inds.

Would you like to learn the way to spot interesting opportunities like the one at 5500 and do that independently. If yes do attend the following workshop.