Monday, March 13, 2017

New Highs followed by 400-500 point correction

UP Results are out and the BJP has got a resounding victory beyond what even the most optimistic exit poll could forecast. This would mean that the markets would rally in the near time and we would go to fresh all time highs.

1. The SGX Nifty is at 9100 and the markets would easily scale Mount 9200. Now, the counts are very clear. We are in a long term bull market.

2. The first wave began in 2001 and ended at 6353 in 2008.

 Second wave corrected this from 6353 to 2252.

The Third and the most powerful wave is in progress.

3.1 2252 to 9119
3.2 9119 to 6825
3.3.1 6825 to 8968
3.3.2 8968 to 7893 7893 and ongoing

Within this, end in a few days between 9200 and 9300. Then we will have a correction of 400-600 point which would be a very good buying opportunity.

This also means that the next 2 years will be very good for the stock markets. Book profits in the highs of this week and buy the stocks back at every dip.

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