Where is Nifty Future Heading 5100 or 7100?

February 24, 2014

Where is Nifty Future Heading 5100 or 7100?

Greetings from Hitesh! We are at the end of February and there are 3 more months to go before we will have new government (Mostly – May end or June First Week). Question in everybody’s mind is which side market will move? Up or Down? If up…how much? If down…how much? Let me deal with them.

Historical Data:-

If you look at the Market history from 1984 to 2009, except 2004, we have seen these three realities.

1. Before Election USD has always moved up against Indian Rupee.

2. Before Election Indian market has always been down…..and it moved up dramatically, after the results are out or the government is formed.

3. There have always been uncertainties in past 30 years before elections.

If market follows the same trend in 2014 also, it should go down in the coming three months and move up drastically after the election results are out. You can take advantage of these situations in following ways.

If you have not invested yet, you can invest at every low in the market and also short Nifty Future to take advantage of market going down. If you are fully invested, you can hedge your positions by Options Trading.

But do you think playing in the market is that simple? If market follows Linear Logic……everybody would have been successful investor. So, what is the Missing Link in above?

The Missing Link:-

Missing link is not your calculations, your expectations or your hope. The missing link is not preparing a plan. Your plan should guide you, what will you do, if your calculations comes true and what will you do if it does not?

95% of the normal investors expect that what they have expected or have been told by an expert will happen. They trade in that direction and close their mind to other possibilities.

The right questions you should ask are……

1.   What will I do, if Nifty Future touches 5100 first?

2.   What will I do, if Nifty Future touches 7100 first?

3.   What will I do, if market remains stable?

4.   What will I do, if market moves beyond 5100 or 7100 on either side?

Till you think on all these probabilities, you can not have a balanced investment plan. You can add many more probabilities also.

Art of Creating Inner Balance:-

If loss makes you sad and profit makes you happy then you must create an inner balance. The reality of sadness and happiness is like this.

1.   Sadness gives depth. Happiness gives height.

2.   Sadness gives roots. Happiness gives branches.

3.   Happiness is like a tree going into the sky, and sadness is like the roots going down into the womb of the earth.

Both are needed, and the higher a tree goes, the deeper it goes, simultaneously. The bigger the tree, the bigger will be its roots. In fact, it is always in proportion. That's its balance.

In Technical parlance, this is known as retracement levels.

My Personal Call:-

We have developed a Nifty trading model……which can make money for you in tons at 5100 and at 7100 also. If you wish you can approach us for the same.

If you want stock specific ideas, you can also approach us.

Have A Great Week Ahead.

Follow me on Twitter @hiteshmparikh Or on Whatsapp - +91-9869425399.

Live With Passion…Invest With Passion.

Hitesh Parikh.