Nifty never closed below 50 E-DMA in the current up move from March 16 till yesterday. The week also closed near low only.
Sharp up move like on previous occasion is possible or we are heading towards new low.
As Nifty P/E is near 24 ; longs should be avoided for short term trading.
For short term trading one may long nifty with strict stop loss of 8500.
Medium-Long term Investors may wait for better opportunity.
Conclusion:
ST Traders : Long with strict SL 8500 till 8500 breaks. If 8500 breaks then sell on every rise for some months
Medium term investor : Book Profit / stay away till valuation become reasonable
Long Term Investor : Wait for better opportunity
Sharp up move like on previous occasion is possible or we are heading towards new low.
As Nifty P/E is near 24 ; longs should be avoided for short term trading.
For short term trading one may long nifty with strict stop loss of 8500.
Medium-Long term Investors may wait for better opportunity.
Conclusion:
ST Traders : Long with strict SL 8500 till 8500 breaks. If 8500 breaks then sell on every rise for some months
Medium term investor : Book Profit / stay away till valuation become reasonable
Long Term Investor : Wait for better opportunity
