Nifty strategy should you buy or sell nifty

 Nifty , should buy, sell or hold nifty? 

This question must be running in everyone's mind. Nifty has shown unexpected upside movement in the last few months. Nifty was trading below 7600 levels in March 2020 and is now trading at 18,600 in Oct 2021. after such big movement in the nifty what traders should do now ? should you buy or sell nifty? 

We will try to find the answer of this question by checking technical levels of nifty on charts.  If we check the charts of Nifty for the last 6 months then Nifty has seen a lot of bullish momentum after the levels of 14,660. A straight line is seen on Nifty charts. Whenever a straight line appears on the technical charts, the pattern is considered to be bullish. Nifty's low near 14062 in last six months and Nifty is seeing a high of 18,600. 

Should we book Profit in Indian stock market:

 Nifty charts are bullish. But now after the life time high in nifty what should be nifty hold and sell?

My answer will remain the same that booking profit in Nifty would be a right strategy. Whenever Unlimited Upside comes in the market, traders rush to book profits and this is also the right strategy. We wrote an article in my website a few days ago that can we see deep correction in Indian market?  Can we see deep correction in Indian stock market in coming days

Then the Sensex was running at nearly  61,500 levels. In that article I had written that there is a correction in Sensex and Nifty due but now this correction will start from 60,000 sensex and will start from lower levels of sensex , no one can tell. Anyway, if we noticed, Nifty and Sensex have given up move in the last few weeks but stocks have not seen that much up move. Somewhere it looks like mid cap & small cap stocks are getting exhausted.

Short Term targets in Nifty:

If Nifty trade above the 18572 levels & give close above this levels then target for nifty will be open for higher side. in this case strict stoploss in nifty should be 18,382 or at lower levels 18, 228 for traders & investors too. 

What are the lower level targets in Nifty:

if Nifty closes below the level of 18,205 then lower levels up to 18, 160, 18,080, 18000, 17,950, 17,900, 17,850, 17,800 to  17,600 or 17,580 for short term correction should stop around these levels but mind it these levels will only come if Nifty will give close below 18,165 level. in this case stoploss for nifty will be 18208.

If  more profit booking comes into the Indian stock market then we may see more lower levels in nifty in coming weeks or months which can drag nifty to 17,565, 17, 550, 17,535 levels. 

Let us tell you that the trend of Nifty is still bullish. Profit booking can be seen in Nifty but in short term. if nifty traders want to buy nifty then stop loss on positional basis in nifty should be around 18,160 on closing basis.

Long Term Medium targets in Nifty:

If we look at the long term charts of Nifty, then we will find that Nifty is still in bullish Zone and traders may keep the strategy of buying Dip with strict stop losses. But if one wants to invest in stocks by looking at Nifty from long term point of view, then one should wait now. A correction in the Indian stock market or selloff in Nifty is still due. We can see Profit Booking in Nifty in coming few days but break down levels are still far away on  Long term charts of Nifty. As for a simple Nifty analysis, as long as the Nifty spot trades above the level of 18,160, the chances of a big downside in Nifty are bit low.

Should long term Investors start buy at current market levels of nifty & Sensex?

For investors, Indian stock market has always been a market for buy dip. I have always written on my website and on my social media accounts that one should invest in Indian stocks whose fundamentals are good. But right now Nifty is looking expansive at 18,500 levels. In simple words, Indian stock market is overvalued. Long term investors should wait for fresh investments as of now and wait for some time for profit booking in the Indian stock market. If you are doing any short term trading then trading with strict stop loss should be best way. There may be stock specific action in the market for days. The movement in the stock price of the company in which there will be news can be seen in the stock price of that company.

 Disclaimer: The above discussion on nifty & Indian stock market is my personal view. Please do your own research too. My view may differ from other stock experts view.