Technical analysts are fond of finding the turning points. If found correctly it always puts the money in the banks of the finders. Charts help to pinpoint the turning points in the market to identify troughs and peaks but more often technical analysts misread the charts. In fact on 14^th January there was a dark cloud cover candlestick. Many analysts initiated shorts in Nifty as dark cloud cover candlestick is a bearish one. Similarly on 18^th January when a Doji was notice in Nifty daily chart many analysts thought that it is a tiring sign and initiated short in Nifty. But the market stripped their wealth as the Nifty went up sharply on both the occasions.  On these days we posted that the market would move up sharply and the market responded to our calls. It clearly indicates that we have to carefully evaluate the turning point in order to make money. We in fact, showed in RIL even before the opening bell and some of the readers made good money out of it.

Yet another example was illustrated in our yesterday’s newsletter where we indicated that Nifty has hit a resistance point of 6100. We also informed the market may struggle a bit. Yesterday Nifty had hit a high of 6,101.30, but could not sustain above 6100 and finally it lost all its advantage to close at 6,048.50. Incidentally Nifty lost 3.80 points or 0.56% and if you had acted as per our newsletter you know who the winner is. The market acted as per our reading and exactly reacted at 6100.

The market players were confused reading the chart and in fact went long yesterday but at the end of the day they were stripped off their wealth. If they had spent 1 minute reading our report they would have been better off.

Coming to today’s market, there is no change in our view the Nifty is expected to trade in a broad range of 5950-6100 range for some more time.

Let us find more such turning points in our future newsletters.