Shomesh Kumar, Market Analyst
Time for a quick bite because Nifty has just achieved our target of 12,400 advised earlier and reversed from there. This kind of intermittent fall will keep shaking the sentiments.
But this should happen only with weak hands. With strong hands these steep falls should be treated as an opportunity to enter again. I will not get tired of repeating this time and again as I see the trajectory up and up.
Kindly feed this in your mind that no trend reversal will happen unless 11,800 is broken on Nifty. Even if that happens, it will be assessed at that point of time only whether the reversal is for short term or for long term. The markets face sell-off at higher levels because they are expensive and traders will make themselves light weight at higher levels. This behaviour of traders will make a Rajdhani train behave like a passenger train, but point to be noted that this is happening because Rajdhani is running ahead of its schedule and therefore it needs to keep halting in between to reach the destination as per the schedule.
With all odds in place, it will reach its destination for sure. Whenever your sentiment is shaken, please remind yourself that you have to think like an Investor and NOT a Trader. Your destinations on Nifty are much farther such as 12,700, 13,500 and 14,000-14,500. I will keep reviewing these levels in light of further developments into future. As of now lock these levels and proceed further.
Now, the next question for me to answer is - when do you begin to enter the markets again. You can do this closer to 12,000 levels.
Mid & Small cap stocks have started to show their colour, but never ever get lured with junk and low quality stocks even if it means sacrificing some quick gains. Safety first! The philosophy should be, "Control the risk & return will follow". If you want to survive long in the stock markets as winners, always make return a "By-product of containing risk". I know my theories are little bizarre but they have paid me off and in turn they will pay you off too. (Share Manthan, January 20, 2020)