3 top stock market lessons to be learnt from last week and the way forward today - Check out this Anil Singhvi class
Key lessons to be learnt from last week and the way forward today.
Zee Business Managing Editor Anil Singhvi says that stock markets are going to witness some strong action this week but participants need to take learnings from last week's trade. Market Guru says that the trend is extremely strong; one must not get worried if the market falls for a day or two. For the trend to change, the market must close below a certain level. Market Guru says corrections may happen price-wise, which may be sharper and faster or time-wise which may bother participants.
Anil Singhvi has been informing that if the market closes below 11650 levels then it is an indication that trends of the market have closed from positive to neutral. If the market falls from 12025 to 11650, the correction is a healthy correction, as 3.5% or 4% correction in a strong market is always a healthy correction. Market participants have witnessed strong upward movement in the market from 10800 levels on nifty to 12000, if the market falls by 400 points, it’s a healthy correction.
Market has not closed below 11650 levels on the Nifty, in fact many times when the market went to 11660 and 11670 it had reversed from there showing that 11650 is a crucial support and market reverses from those levels. Trend is extremely clear and momentum is extremely strong, but it is important for investors to keep stop-loss intact.
Market Guru said he will also provide to participants the stop-loss that they have to keep for trading, unless one sees the stop loss getting triggered it is important to hold on to long positions. This is extremely important to be kept in mind for trading.
Market gave trading opportunities on both sides (Long and short) in the past few sessions and markets were trading in range. Instead of doing contra trades and going against the trend, the right strategy would be to buy on dips which are important to understand. So, one must buy at the right time and go long in the markets rather than going short. The Market Guru says he is closely monitoring 2 important levels, if the market closes above those levels than markets may be heading to newer highs.
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Point to remember is unless the Nifty closes below 11650, the trend of the market has not changed from positive to neutral. Bank Nifty should close below 22850 for the trend to change from neutral to positive.
(Authored by Rahul Kamdar)
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