The Market is In A World Of Its Won

Published: Thu, 06/24/21

Dear ,

To fear or Not to Fear that is the Question - The Pic above got its fame on Twitter[@indiacharts] but for those who use Astro as part of their trading strategy it can appear offensive. But that is hardly intentional. Its just that the impact of stars on the markets is portrayed wrongly.

But again the purpose of the post above was only to highlight - I remain bullish against all odds on Indian stock markets till proven otherwise.

So it was bold and not arrogant. It has always been my style to stick my neck out without fear of going wrong because....

I follow a method that is time tested for me with proven results. But no method can be followed if you do not have faith in it to start with. In other worlds I always believe that everything I am about to say or do is going to work out based on the underlying method, Even though only 70% might actually prove to be so. I cannot pick and choose when I am going to be right because I cannot and do not know this. Doing so would involve not following my own method. Trading with confidence involves having faith and confidence in the method you follow. Once you have found a method that works its really about the execution. Not letting your emotions play around with your decision making is the really bigger lesson in financial markets and it comes at a price.

Today's Updates Below

Rohit Srivastava

The Truth About the Markets

Nifty IT index

My confusion with the IT index is now at an inflection point. Either we are still ending a 5 wave advance or if prices go any higher then the blue markings mean that a larger 3rd wave started and we are going to extend a lot more. I am told that earnings growth should keep tech outperforming. But the chart shows that E=C reached, and the daily momentum crossed over to the sell-side. Now E cannot be larger than C so this is it. Weekly momentum has negative divergences and so that supports a possible pullback first before going higher. But rarely, sometimes we do get a 3rd wave without a consolidation. So this is it, if consolidation/correction is first before further highs in the Nifty IT index then that time is now. How deep a correction? Even a small one to 25000 would be enough [23.6% retracement]. We closed at 28367.

Russel 2000

Russell ends up for the last 2 days and managed to close outside the blue triangle again. The smallcap index is starting wave iii up toward 2470 [current 2295].

Shanghai Composite

Shanghai or china - hs pulled back in wave II of 3 and now III of 3 should unfold and take us back to 52 week highs. 3750 is the next level on the way up.

Sugar Continous [NY CSCE]

Sugar Prices consolidated in a falling channel inside wave 2 and bounced off the lower channel line. So maybe finally wave 2 [at 16.44] is over and wave 3 toward 21.50 can start from here.

USDINR

USDINR - at 61.8% retracement - and with 5 waves done in wave c of 2, the best inference till we get new evidence is that the bounce is complete and wave 3 down another impulsive decline should start soon.

Nikkei 225

Japan's most recent rally ended without being impulsive and I have marked it as an 'x' wave. The next move up should be wave 5 when it breaks past the blue falling channel at 29250.

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Rohit Srivastava
www.indiacharts.com
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