Nifty Time for Reversal?
On 11th Feb 2016 “History Repeats itself! Is it a mere coincidence?” was published to emphasize the power of Time cycle Analysis.
If we refer back to the year 2011, we are able to notice the fact that Nifty was trading at Price to Earning(PE) ratio of 19. Technically the charts were poised at symmetrical saucer formation. After making the double bottom in weekly chart and Ending diagonal Pattern in the daily chart, Nifty started its upward journey.
After 5 years Nifty is trading again at PE of 19. Coincidently technical chart appears to be the replica of the past. Remember any pattern analysis can fail, hence it’s better to wait and watch for the signal from the market to conclude that bottom is made and next up-move will resume!
It’s advisable to be cautious. Index Trading is a leveraged play. There is a chance to lose more than your account size when you are trading in Future and Options (i.e Derivative Trading).
Information presented in the above article is available in public domain and it should not be treated as “Research Report”
Registration Status: I am not a SEBI registered Research Analyst.
As per SEBI (RESEARCH ANALYSTS) REGULATIONS, 2014 and clarifications provided by SEBI “Any person who makes the recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations.”
Disclaimer: I do not hold any position in NIFTY.