So far the Indian markets decline has stayed within the bounds of a correction and much similar to the previous two corrections - roughly a 12% drop from the highs.
Nifty Daily chart - Source Bloomberg
However this time around, there are a few variations. There has been considerable technical damage in many of the world indices and some have even topped out.
More importantly, one of my derived indicators that I use to measure the health of the indian markets, came very close to throwing a market top signal. And this will be the indicator I will be keeping an eye on for the next few days to a few weeks.
Indian Economy barometer - data and charts bloomberg
This indicator has a stellar track record - it either leads or is coincident with the market topping out process. Obviously, I will not reveal what or how this indicator is derived 🙂
3 Responses to “This indicator will be the key”
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Sir, please let us know – Where do we see markets by end of this week ? Will they ever touch 4800 this week ?
Rahul, know the trend and stay with the trend. AND take whatever the market gives – that way you will stay in the business of speculation long enough.
Good luck.
Hope you write it in your book, in later years, for posterity to know…:)
And keep us in the loop as soon as you know what the indicator is indicating, as and when…