The Indian indices has given excellent returns during the last two years.
Nifty has moved from 6825 to 8555 during 2016 and from 7893 to 10443 during 2017 giving an absolute return of 25% and 32% respectively. With an inverse head and shoulder target of 11,000 on monthly charts, Nifty is likely to top out by March 2018 and begin a corrective phase which is may last the entire 2018 and probably 2019 till the outcome of the general elections.
The monthly chart of Nifty indicate a slowing momentum which is likely to cross over to negative zone marking the beginning of corrective phase in Nifty. The placement of trend oscillator is identical to 2015, which triggered a year long correction.
The correction may also coincide with a populist budget the government may present a year ahead of the elections in 2019 and compromise on the fiscal discipline.
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| Nifty Monthly |
