NIFTY50: October “UP” – November “DOWN” 2021 – No Surprise ‼️

Better to Forewarn…

Forewarned is always insured, at least emotionally. And the Research Analyst is required to prepare their Clients for even the most unfavorable circumstances. This article is all about that aspect of our working.

👉 3rd Week of October 2021 – NIFTY50 Hit all time High at 18602

👉 4th Week of November 2021 – 1600pts Correction from all time high

And both of this were updated to Clients well in advance. Please see attached Image.

Good thing is that Market played out the way Pillars’ Strategy forewarned us.

What all has happened during this period are listed below for quick recall…

Second Quarterly Results, Festivities (Navaratri, Dussehra, Deepawali, etc) Monthly Data Points (Auto Sales, Cement Despatches, Telecom Subscribers, Inflation), RBI FMC Meet, Corporate Announcements (like RIL Aramco Deal Off), Crypto and Natural Gas & Crude’s relentless Rising prices, Repeal of Farm Bills, FOMC Taper Decisions, COVID-19 Cases and likewise many more were either unknown or far off in future.

No one know how these News, Events will turn out; most importantly how Market would react to them.

Agreed, Well, back then no one knew including ourselves but we had a fair idea about the possibilities and those were updated to Members of 💯% Club via our 9th October message.

What Next from hereon:

During October, NIFTY50 revisiting to its 100 DMA (and possibly 200 DMA) levels looked difficult, suspicious if not entirely impossible. But, that happened in November as projected by Pillars’ Strategy.

Agreed not the way we thought and exactly not in the manner we wanted it to happen. For Example, We had two months’ time to hit 100DMA but Market did in Two Days – 500pts on Monday 22 November and another 500pts on Friday 26 November 2021. Secondly, we thought IT Stocks (TCS, INFY) will lead this time but again BANK Stocks did.

Likewise, once again, we forewarn that Pillars’ Strategy believes that NIFTY50 is not in down trend. And, we will see New All Time High on & before March 2022 ‼️

Of course, if Trend Reversal comes then we will change our view but even in that case minimum 18000 is expected to hit.

However, we didn’t change our view in the follow-on Update.

Only two updates about NIFTY50 in Two Months and both are mentioned herein. We had not advised any trading call in NIFTY BANKNIFTY FINNIFTY neither in Futures nor in Options. Simply because we didn’t have clear cut Stop-loss. Even though clearly were aware of the impending levels.

Our Policy is Simple – “No SL No Trading”.

Sitting Idle is much better strategy than to trade without SL. And, precisely so not giving Buy even at current levels. Let’s Watch what happens from hereon.

Logical Thinking is a must

Even then American & European Markets were making All time high during November 2021

Compare the following Images

American Market went on to Make New All time High after touching DMAs

Remember Delta Variant driven 3rd Wave⁉️

What happened after that.

We all saw NIFTY50 hitting 18500+ levels.

At present, NIFTY50 down 9.5% from its all time High and BANNIFTY 16.67% far off. Where as Global Markets just saw pull back now – And, they are hardly 5% down from their respective High levels.

Think Logically, If INDIA was good at 18500 as promoted & marketed by Business Media and various Analysts back then is it not the “BEST” at 17000 levels. either of the things are wrong, is it not ?

How to Respond ⁉️

When Prices were one way going up then people wanted Correction which never materialized.

And, now when correction happened then same set of people are worried about Down Trend.

Either ways they aren’t happy, satisfied to take risk. But, happily share opinion freely.

That is the best way we can think off in given situation.

Need more help?

☎ +91 9900330558, Bengaluru; Preferably during Market Hours (9am to 4:00pm).