Those who have been waiting for my post since 31st May, would realize that I have been quiet for a reason. There has been bloodletting in Indian markets and in such situations its better to witness from the sidelines. That is why I have been giving no recommendations for the last two weeks. I wanted the dust to settle down before we take up the fight again. Now the time has come to start buying in Indian stock market. You may well ask - why? There are many reasons which I shall elaborate in succeeding paragraphs, but the primary reason is technical in nature. You see, there is this Golden Ratio of 61.8% which is generally found in all aspects of nature. This has been expounded by an Italian mathematician named Fibonacci. Today Nifty has retraced exactly 61.8% of its earlier up-move from 5477(10 April 2013) to 6229(20 May 2013). See it in the chart given below:-
That's the technical aspect for starting your buy tomorrow. The other reasons for buying which will have sentimental and fundamental effects on Indian markets are listed below :-
- Rating Agency Fitch has revised the outlook for India from Negative to Stable.
- Rupee has reversed its falling trend and has risen 1% against the US Dollar.
- Finance Minister will announce measures to rescue Rupee tomorrow.
- Globally Dollar is weakening as is evident from the Dollar Index
So there you are! Come tomorrow be mentally prepared to start shopping in Indian stocks of substance. Nifty is expected to open with a gap up tomorrow and should cruise to level of 5850. Today Nifty closed at 5760. Happy Trading!
