It look like the same is repeating now. By Start of October 2021, Nifty was trading around 17,550 and in 18 days it moved to the all time high of 18,604.45. This was a rise of around 5.8%. Later in 2 weeks around 10 trading sessions, nifty fell to 17,670. This was a fall of around 5%. If history repeats and if nifty started to climb 12.5% in just 15 days as in February 2021, then nifty will touch a new all-time high of around 19,850
The only difference is FIIs were net buyers and they bought heavily in February 2021 and now they are net sellers. If FIIs started to buy as before, then nifty would definitely climb the rocks and we will see the unimaginable all-time high in short time. We should also note that most of the Indian companies reported the positive earnings for September 2021. The Indian markets were trading at a higher level and it looks like FIIs were booking the profits
It is actually a good market for the investors to stay invested and continue investing as the valuations are consolidating or the share prices are correcting. No index or stock will keep on going in a single direction. There should be a correction both ways and that is healthy for the market too. As we are nearing Diwali and only 3 trading sessions left for the festival, there is expected for a violent move upwards soon
Stay invested consistently and gain abundance wealth over time.
Disclaimer: Above blog is for informational and educational purpose and this is completely my personal opinion. Consult your financial advisor before investing. Share market is subjected to high risk for speculators and short term traders.
Have a Great Day
B G Nareshkumar
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