Read the lines below.....
"As stated earlier, I would still like to remind you that the bear phase is over. Elections are round the corner. Knee jerk reactions can take place on 14th after the exit polls results are flashed. BUT, any dip, if at all, should only create room for the next upmove, ie. 4750-5000 on Nifty (sounds absurd??? Well, it really does.....but a wave suggests that only......)......"
Well, these are nothing but the last paragraph of my article 'A review and a vision' posted here on 4th May 2009.....Nifty was at 3650 on that day.....And today, on 18th May, we saw a historic moment in Indian Markets - 2 upper circuits and Nifty @ 4323. I maintained my stance all through that the bear market is over and out since 3350 levels.......True that I am also bound within certain human fears and because of election results asked few of my clients, not to take leveraged positions or book some profits of the shelf.......But all my clients went home with sufficient long positions on Friday when the entire world was panicking.....For now that level seems quite achievable.
So how should one position oneself at these levels.....
1. Book 75% profits in biggies.
2. Put the 50% of the profits in large mid-caps and some small-caps.
3. Nifty will slowly try to move towards 4700 where the bullish Wolfe Wave completes its sixth extension. Note the sixth extension wave may complete at 5000 levels also depending on which reference point it assumes. (I cannot show charts here to explain because of professional commitments)
4. Once above/near 4700, it would be wise to book 90% profits and leave the remainder with trailing stop around todays high ie. 4300.5. Just Remember: A correction in bull market will come around 4700-5000 levels which can take us all the way back to 3500-3800. 6. Follow the above strategy and I expect a decent profit can be made in that manner.
All the best and Happy Trading!!! Enjoy the video clip. A defining moment for All....
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