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Sunday, December 1, 2013

Nifty may cross 7000 in 2014

If Nifty remains above 6200, there are strong indications that it may cross 7000 in 2014. The major bullish factors in brief are –

  1. Nifty future gave a breakout in October above its previous monthly highs of 6162.95 (in Dec 2007) and 6162.55 (in Dec 2010). It is still above this level and if it does not go below it, it will make new highs in 2014.
  2. Nifty has broken upwards out of a rising triangle formation which is a clear bullish signal.
  3. After falling below the speed resistance lines (three blue lines) in Aug, the Nifty is again comfortably above the last of these support lines. It is bullish as long as this support is not broken.
  4. MACD has turned bullish again
  5. Trikaal Long Term Cycle Indicator has turned upwards indicating uptrend may be continued.
Next major Fibonacci level is 6938 which may be achieved in this rally by Mar 2014 if it continues. Downside probabilities are low but if Nifty falls below the last blue line support, it may go down upto 5700-5500. There are excellent investment opportunities that exist right now and one should not miss them. Even though trend is up, not all sectors are expected to perform well, one should be very cautious in selection of sectors and stocks.
Proper portfolio management can give 40-60% or even more return this year.

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