It is amazing how Nifty, after crossing the 61.8% Fibonacci retracement level of 4789, has managed to go further ahead thus creating a huge barrier for any fall in the future. Let us see what has happened to the other 2 indices Nifty Junior and Nifty Midcap 50.
Nifty Junior crossed this 61.8% level (9539) last week and has closed well above it (10003.8). Next in line is the Midcap 50 index, and a look at this chart gives an hint as to why action has mainly been in midcaps and not the main index stocks. Nifty Midcap 50 index is currently at 2642, and the 61.8% retracement level of the 2008 crash is at 2857, still a clear 8% away.
It would be safe to say now that the action in midcap stocks will continue till this level of 2857 is crossed.
It needs no Einstein to predict which stocks should be on one's radar - yes, the Midcap index constituents.
Readers can take a pick from the list from here
http://www.nseindia.com/content/indices/ind_niftymidcap50list.csv, and enjoy the ride to beyond 2857.
That does not mean, other stocks will remain sideways - this is just an attempt to identify the ones that are more likely to rise more in the near future.
Chart of Nifty Midcap 50 attached.
1 comment:
Siejee - long time no update??
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