18000 Nifty done, now read the tea leaves and not the News

Published: Mon, 10/11/21

Dear ,

Not a day goes without the discussion around the dollar or rising bond yields and how all of this is going to blow apart. Yes it should have when deflation was the theme and the dollar was rising. It should have by the time Oil went negative and the producers had no place to store it. It should have when NBFCs were defaulting on the debt and debt funds were closing out withdrawals. Now all that was before 2020.

But that was also a time when MF flows were at the highest in history. Confidence in investing in India was at its peak no matter what.

So what happened in between?

The negative impact of the pandemic on sentiment. Not just on some investors but on the news media.

But it does not stop even as we are on a full drive to getting vaccinated. Whatever the reason be for markets going higher fewer people want to take the plunge.

But this is what it is. In today's updates RIL breaks out of a consolidation after a year on the upside starting a new move. The video update from this mornings 'IC Mornings' watches commodities prices still making new 52 week highs. You may not like it or the reasons behind it but this action is bullish for the Nifty and therefore makes it difficult for the contrary to happen.

Read the tea leaves and not the news. Because news is not written by the market. In fact news is not news anymore it is an opinion.

Rohit Srivastava

The Truth About the Markets

Today's Updates

Reliance

Reliance has broken out from the consolidation and the wave count suggests the stock is in wave (3). The equality level of wave (1) = (3) works out to 5108. In the short term, wave (3) is further getting subdivided. Currently, wave iii of III of higher degree wave (3) is in play. In the near term, minor degree wave i = iii is at 2920 level. On the way down, the weekly swing low of 2366 will be a crucial support level to watch out for in the forthcoming trading sessions.

Nifty IT

The daily momentum index has completed its pullback cycle and it is now on the verge of turning bullish. As per the wave counts, wave V of 5 is still pending in the Nifty IT index and that can now possibly play out. At 39930, wave V will be equal to wave I. On the way down, the recent low of 34719 and the 40DEMA, which is currently pegged at 34525 are the crucial support levels to watch out for in the forthcoming trading sessions.

Daily Sentiment Index

Nifty Video Update

Nifty went past 18000 and momentum in stocks remains strong. We should continue higher toward 18200. Bank nifty and the metal index also joining in. PSU stocks pullback is done.
Watch the video update here

https://Indiacharts.screencasthost.com/watch/cr6XivVXZvX

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Rohit Srivastava
www.indiacharts.com
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