Nifty Cycle For Coming Month
MyCharts
Nifty
Cycle’s :: There is a major divergences
on daily charts. And we believe this is just a corrective up move .There have
been major breakdowns in the last 6 months. Like the one in October 2009 and JAN
2010. But that is not substantial to call it a smooth bull market. The way
prices broke down in the previous corrections where swift but were contained .We
had time to do our homework this weekend to find the answers to see why prices
didn’t correct more than 10-15 % with bad macro factors such as inflation .Which
in a way don’t justify the exuberance in the market place. The technical factors
also don’t not justify for a smooth up move from current levels though capital
flows have been strong in the last three months.
As everyone knows all
asset classes run in Cycles.(up and down like a wave of optimism and
pessimism).Even our universe follows such rules called Cycles. We can call this
Cycles which are Harmonic by Nature. Cycles of optimism make tops and excessive
pessimism bottoms .When things are good we humans feel confidant and optimistic
and it reflects in our music and other things that surround us and similarly we
feel negative when things around us start cracking. There are many ways to
notice this and that is why we have many Cycles like the moon Cycles and sun
spot Cycle’s .These Cycles are nothing new. There is a Cycle which has been also
proved by scientists.
Coming on the markets ...Our market Sensex &
Nifty ...It has Cycle turns round about every 48 days / 125 days / 140 days /
340 days and so on . Now lets consider 48 day Cycle from 11th March but we
didn’t see much of a correction from that point time wise . Now we have another
Cycle convergence starting from April and first week of May 2010 .So we should
see a healthy correction in this time frame since all four Cycles like Daily,
Weekly, Monthly and Yearly sentiments have been touching extreme points and
should move down .But it may not be a big correction since the long term Cycles
are healthy at this point .But majority of long term Cycles turn down in June,
July and August 2010 . Hope everyone understands what the market might do next
when there is so much optimism around.
(Drafting by Leo)