This is a monthly chart of Nifty from 2005 onwards and the Fibonacci Retracement levels are presenting very clear picture in front of us.
If Nifty is able to hold onto 4750 levels on the closing basis on monthly chart than the chances of start of another bull market when global environment become conducive, are very bright.
But in case we break the 4750 than we are looking at 4300 which is also a long term support for the market, below this level pull up your pants and run because Nifty is going to dogs in this case.
On the upside we can safely assume that the worst is over whenever we start trading above 5400.
In between Its a market for both Traders and Investors who want to bet on long term growth story of India, as i feel there are lots of largecaps with huge amount of cash on the balance-sheet are just waiting for the opportunity to grow inorganically, one prime example is Reliance Industries.
Traders should stick to there systems and use proper Position sizing and Money management rules by following stop-loss on trades and look for smaller profits rather than playing for that big move.
I have been busy myself, but hope i will be more active than in the past.
Thanks for Visiting and sharing.