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Bounce Back on the
Crads
Again our last view was bang on target (Click
here for the last market view). We have clearly
mentioned that Nifty has closed at 3816 , Exit on close
below 3800 , buy only if it goes above 4000. It was also
mentioned that below 3850 , Nifty can hit 3250 and on Friday
Nifty closed at 3279.
Now what ???
As market has completed 50% correction
, we believe traders can play for a bounce back of 10 % ,
for the target of 3600.
What about investors ???
Since we are getting an attractive valuations , long term
investors should go for aggressive buying (at least 50% of
the planned investment for 1 to 2 years). Downside risk
seems limited to 10% to 15% from here against a huge upside
potential
Nifty may hit the lower line of the
ongoing channel around 3220-3280 levels which can produce a
bounce again. So we initiate a buy call for the short term
traders , whereas Long term investors should deploy 50% of
the planned investment at these levels.
Historical correction analysis
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