Levels to watch out
I haven't been a regular here, but I remember spotting this setup on Nifty a while ago and decided to go short. The market had formed a Head and Shoulders (H&S) pattern, which traditionally signals a top. However, given the market's behavior over the past couple of years, it was difficult to call it a clear reversal. Still, I remained short, albeit with caution.
Once the 24700 level was breached, it became clear that a deeper correction was likely, with 23000 appearing as a significant support before a possible short-term bounce. I'm still skeptical about any rally and expect further downside, with 21900 as the next key level. Historically, the market tends to correct every four years, and if this cycle follows suit, a 50% correction from the recent rally could bring Nifty down to around the 19000 range, which could be an attractive level for long-term investors.
Retail investors, unfortunately, tend to chase rallies, and brokers often encourage buying at market peaks. Without a logical, well-thought-out approach, small traders can get wiped out in such volatile conditions. The key to growing wealth is consistent, disciplined investing, rather than trying to time the market.
Once the 24700 level was breached, it became clear that a deeper correction was likely, with 23000 appearing as a significant support before a possible short-term bounce. I'm still skeptical about any rally and expect further downside, with 21900 as the next key level. Historically, the market tends to correct every four years, and if this cycle follows suit, a 50% correction from the recent rally could bring Nifty down to around the 19000 range, which could be an attractive level for long-term investors.
Retail investors, unfortunately, tend to chase rallies, and brokers often encourage buying at market peaks. Without a logical, well-thought-out approach, small traders can get wiped out in such volatile conditions. The key to growing wealth is consistent, disciplined investing, rather than trying to time the market.
DO WHAT OTHERS DON"T KNOW AND DON'T DO WHAT OTHERS KNOW
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