The trend for NIFTY stocks is up. That has not changed. Like many stocks and indexes around the world, NIFTY been mostly stagnant since early 2018. Unlike most stocks and indexes, however, NIFTY has managed to put in higher lows and higher highs along the way. So it’s not just a consolidation.
I do believe NIFTY resolves this consolidation higher and heads up towards 13,000 – this is the target:
While NIFTY can certainly go higher than that, and I actually do believe it does, for right now 13,000 is a solid target. This level represents the 261.8% Fibonacci Extension of the 2008 decline and also the 261.8% Extension of the 2015-2016 decline. For me, it’s when these extensions cluster together where we want to pay more attention.
This is where I think we’re going.
Sideways to up, I believe, is the path of least resistance. Not down.
If/when the data changes, we’ll change our approach.
This is a market environment where we want to be looking for stocks to buy, not stocks to sell.