Hello Folks,
In the last 2 months, we did research on the market sentiments and our team observed that market indices made a Negative crossover or Death Cross on a monthly chart pattern and also observed that the Nifty made head and shoulder pattern on daily charts. It means there is more pain in the markets or a possible 500 to 1000 point fall from current levels.
Monthly MACD Negative Cross-over:-
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| Monthly MACD Negative Cross-over |
Head And Shoulder Pattern on Daily Chart:-
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| Head And Shoulder Pattern |
Also, focus on those 4 key factors that affect the market:-
1) Trump's statements regarding Tariffs on Asian Countries.
2) US bond yields rise. That's why FIIs are selling stocks.
3) The dollar is strengthening and Rupees keeps falling.
4) HMPV virus 🦠fear and its circumstances.
These factors drag down the market and it might be possible that the market will fall further.
Your next question would be, “What can we do now ?”
Patience will pay off. Wait for further corrections. If the market come down to 22,000-22,500 again, which will create a barrier to further fall. I have personally observed that on a monthly chart pattern, whenever the market touches “20 EMA in a monthly chart pattern”, there is a strong buy that leads to the market retesting all-time high levels, or it might be possible we can see a new lifetime high this year.
20 EMA in a monthly chart pattern:-
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| 20 EMA in a monthly chart pattern |
Again I must say,
GOVT strongly focused on 6 Sectors & Industries, which will significantly impact the Indian economy.
1) Power Renewable Energy (Production & Distribution)
2) Infrastructures (RAIL, BRIDGE, ROADS, WATER TREATMENT, etc.)
3) Transportation (SHIP, Rail, Airways)
4) Healthcare
5) Defense
6) Chemicals & Fertilizers
Keep adding these sector-specific or industry-specific stocks to your portfolio!
We have identified and created a watch list of these sectors' stocks. If you need those, DM me !
Google Sheet of these Stocks:- Stock List
Please consult with your financial advisor before making any decisions.
Views are personalâś…
