Nifty Article.

Due to increase in number of cases of Corona Virus which now also spreading in different countries by which we have witnessed a biggest fall of 800 points in Nifty from its all-time.

Just For Info.

If we study the Past data on monthly chart of Nifty from 2008 till 2018 it got corrected by 25% and after taking the support it rally to almost 45% which is constantly happening from 2008 to 2018 but now where the Nifty tested its high of 12430.05 but failed to maintain above that level. Below is the table where I have pointed out the correction of moments from High to Low of respective month & Year.

So seeing from past data we can understand that after every correction nifty has given outperforming returns. In this situation, many people panicked and booked losses due to which they could not take advantage of next rally.

As per my observations  I have derived a conclusion that some of the stocks have  outperformed irrespective of Nifty was experiencing a Correction phase or was in Upward Move. From the Chart  it is clearly indicating that Nifty is in "UP Trend" which mean Current top is higher than previous top and current low is higher than previous low.

Now few questions will bother your mind, as to what level it will experience it's next correction, or when it will reverse. As per my view it might test near 11000-10600 level on Weekly Chart. But on the Contrary if its Close is above 11400-11500 then this correction will be ruled out.

Now you might wonder weather is the Bearish Trend started or Beginning of Bearish Market than my answer will be “BIG NO”.  One has to Understand that in this situation the moment of rally from 10004.55 to 12430.05 which is almost 25% up move so if 12% to 13% correction comes than it won’t be surprising.

Support: 11000-10600 Resistance: 11400

AFP Chirag R Sanghvi (Certified Research Analyst)

Mail: chirag@investography.in

Website: www.investography.in

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