Market View – June 2020 (World getting Unlocked)
“The market does not know you exist. You can do nothing to influence it. You can only control your behavior”, Alexander Elder.
People were betting that NIFTY50 will retest its recent low of 7500 in June2020, market will crash and so on… I had stated many times that, market will do, what it wants to do, but will not do, what majority will expect it to do, at that point of time.
Global Equity markets had retraced major part of its fall, now we are just few percentages below the life time high. NIFTY50 at current level of 10167 is 35% higher from its recent low of 7511 and 19% below life high of 12430 level. DOWJONES at current level of 27110 is 49% higher from its recent low of 18213 and 9% below life high of 29568 level.
In my last month article, I did mention that If 8800 will break we might test the lows of 6500-7000 but if not, we can bounce back up to 10000 odd levels. In my 22nd May post, around 17600 BANKNIFTY levels, I did mention to cover all shorts positions in Financial, this was the time when everyone was very bearish on Financials but I had put my neck outside and suggested to buy. On 23rd May, I did mention that we can see at least 10% upside in BANKNIFTY, 19800 level was achieved in a hurry and then 21500 was also achieved.
I did recommend that DOWJONES can move to 25500 and 27000 odd levels in my previous posts and articles.
NIFTY50 now around 10200-10300 levels has a resistance, I see this market making its top, although a madness can further take it up to 10500-10600 levels but I don’t see it going beyond these levels. I believe NIFTY can easily fall to 9600 levels and if it breaks this level, can go further to 9300 odd levels.
BANKNIFTY is likely to face resistance around 21500-22000 levels, again madness can take it to 22500. On downside, I see it going back to 18000-18500 levels.
DOWJONES is trading around/above resistance of 27000, but I feel it would be difficult for it to stay above these levels. In coming days, I believe it can fall to 24500 levels very easily.
At this point of time it will be difficult to say where this correction might take a halt but yes, I clearly see 9300 on NIFTY50 and 24500 on DOWJONES in coming weeks, beyond this fundamental will come into picture and we will have to look for an answer to the questions mentioned below or we will assess the price around those levels.
Has this Virus been controlled?
Have we invented the Vaccine?
Is our economy back to normal working?
Does it look that it will be back to normal in the coming next 3 months?
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