The actual reasons why analysts are expecting a major correction in the market.
Early morning, I was reading an article in ET and suddenly I saw something shocking:
Okay let me write it down for you.
The Nifty is 0.2 per cent away from its 200-day moving average of 10,131.53. The Sensex is not far behind, and is 0.9 per cent away from its 200-DMA of 32718.75. The 200-DMA is a long term average and is considered a major support level.
I immediately reached to my place and tried to draw it by myself. They were right. I was shocked because I didn’t know that. Nifty 50 was was just 0.9% away from its 200-DMA
Fortunately this recent rally stopped the upcoming storm and we are safe (as per now).
Let me tell you the why I am giving so much significance to this line.
The 200-day moving average is a historic and popular technical indicator which investors use to analyze long price trends.
If market trades above 200 DMA then it said that we are in BULL RUN.
If market trades and crosses below 200 DMA then we say we are entering into a BEAR Market.
Ex 1: Nov 2016
Ex 2: Sept 2015
Being a SEBI registered RA, I should know about all these before actually affects the market as whole. I recommend stocks to my clients who are busy in their daily schedule and have less time analyse stock, they just trade the stocks as per recommendations.
Following are the three major reasons which won’t allow market to go up:
Trump’s threads of trade tariffs against India : India will be largely unaffected by the tariffs except for the fact that major exporting countries that face tariff barriers in the US may now divert their goods to India’s large consumer market, affecting Indian producers.
PNB investigation deepening.
Rising US Bong Yields.
Fear of upcoming bank fraud disclosures.
So When will the NSE market recover from this current fall?
Ans: NSE will recover only when these threads will come to a good end otherwise if Trump goes beyond tariffs, we may see a major fall as per news paper shown.
Hope for the best.