More Pain- NIFTY View For Week 7-11 Sep

Read this report on our website Bonvista Financial Planners  

This is painful. Global markets are pulling Indian markets badly. Markets are not sustaining the slightest of gains. Do we say that the downside is over. Or is there more pain.

                                                                                   

Technical Overview: Last week Nifty made high of 8043 and low of 7627. A range of 416 points. As indicated in last post, Nifty could not sustain the gains. The close is below last week's low. Volatility is very high. India VIX is trading near 26. This is not great trading market.  

There is a leftover gap at 7593-7540. Nifty may attempt to take support near this level. However trading is not advisable till the markets give stability indications. Nifty charts are discounting the Technicals to trading on global cues. 

Short Term (Few days to  a Week) : A risky trade only for aggressive traders. If Nifty gaps down in the zone of 7593-7540, one can go long in Nifty with strict stoploss 7535 with a target of 40-50 points.              

Medium Term (Few weeks to a month): More wait is advised here. 

Long Term view on markets (Few months to Year): Go through if you have not read the long term view last week. 

After long I am elaborating this section in the newsletter. Well do we say Nifty is in long term downtrend? 

I have this view: Wait patiently for some more time for Nifty to give us clear indications. So far it does not seem to be anything like downtrend here. This can be seen as opportunity to buy value shares for long term. However markets may not immediately move up now. Further downside though possible, may not be substantial. There is not hurry for buying value shares too. Markets can correct further a bit. So wait patiently for them to give us signals then one can start buying.

For more precise ideas on Nifty trading follow me on Twitter @Bonvista1