The stock markets have rallied strongly for the past seven consecutive weeks, Is it a time for Bear to taken on from now,Nifty 56 Days riding on bull moving strongly….is more to come?
During this period of 21 years, there have been 16 instances of a sustained rally in the Sensex for seven straight weeks. What happened in the 8th week in these 16 cases? In eight instances, the subsequent week has reported a continuation in the Sensex rally. A 50% positive outcome (8 out of 16) is hardly comforting.
Therefore, the probability that the rally will continue this week as well does not seem that likely.
On those occasions when the Sensex has actually continued its momentum, it has risen by an average of 1.85%. The index has seen a maximum gain of 3.63% and a minimum gain of 0.17%. In the eight instances when the Sensex has actually reversed its trend following a seven-week rally, it has averaged a drop of 2.50%, with a maximum fall of 4.70%.
We suggest to book partial profit and wait for new entry levels….Wishing you a Wealthy future.
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