There
is a famous saying in the stock market, "Be fearful when everyone is
greedy, Be greedy when everyone is fearful". Before, doing the technical
analysis of our market for the next week, we want to correlate the first line
of the saying.
What we have noticed
that our indices, nifty, bank nifty and sensex are making new all-time highs on
regular basis. Presently, our market is very strong. Everything is
running well. A feeling of comfort is prevailing in our market. All the market
participants are happy and buying heavily.
All the economic data
and indicators of our country are positive. There is a more than 35% increase
of inflows into the mutual fund industry for the financial year 2024 which is
holding our market like a strong pillar.
In excess of that, now
the FIIs are also started buying in our market heavily that fuels our indices
making new all-time highs consistently. In our previous article we have said
that nifty could touch the psychological level of 24000,and last week it
crossed the magic level decisively.
Now, the question is
"Is it the right time to be fearful, when everyone is greedy”?
Now,
take an example of the yesterday's T20 World Cup final match between India and
South Africa. First, India scored 175 runs in 20 overs batting first. Then South
Africa started their inning badly losing quick 2 wickets. Upto 4-5 overs the
match was in favor of the Indian team. But after the 5th over the South
African batsmen played brilliantly and took the control of the match in favor
of them. At a time, when they needed only 30 runs in 30 balls, just nearly the
final touch to winning the World Cup.
All the supporters,
viewers, officials of the South African team were happy. They were dancing,
signing, clapping in joy like they were just going to win the World Cup in no time.
It was the right time
for India to be fearful and they successfully deployed their strategies nicely
and cautiously. There was a time when South Africa needed only 30 runs in 30
balls and the batsmen in the crease looking very comfortable to reach the
target.
Then the exiting
moment came when Hardik Pandya got the wicket of the well-set batsman Henrik
Klasen. And then came the most exciting and crucial point of the match. David
Miller, the South African batsman hit the ball addressing over the boundary
for a sixer. But suddenly, Suryakumar Jadav took the catch flying over the
boundary touch line successfully.
The catch was
unbelievable and brilliant. That was the biggest tuning point of the match. And
finally, India won the T20 World Cup final after a gap of 17 years.
Like the match, our
current market is also running in a comfortable mood. Everyone is happy and
greedy, and they are buying heavily for making profits. At this juncture, we
need to be cautious, need to be fearful.
Now, until nifty
holding 24000 level comfortably, it can continue its upward journey upto
24500-24600 level. If nifty breaks 24000 level it can go down towards upto
23500 then 23300 and then to 23000 level. All the above are support
levels.
Traders and investors
are adviced to trade cautiously. Stock specific actions are adviced. This is
the right time to be fearful when everyone is greedy. Happy trading.
Disclaimer: The information provided on MoneyWiseMind is for
educational and informational purposes only. It is not intended to be financial
advice, and you should not rely on it as such. Before making any financial
decisions, you should consult a licensed financial advisor.
