Tuesday, February 9, 2010

Nifty is near 200 DMA - Time to get in

Nify is trading near 200 DMA which is at 4657. It made a low of 4675 yesterday. This low is very close to 200 DMa. The old saying of the market is ' Bulls live above 200 DMa. '.

In bull market Index do correct to 200 DMa and these corrections offer wonderful opportunity to buy.Most of the investors/ traders tend to buy at higher levels while the idea should be to buy corrections. One can start with allocation of 30 % of capital and keep on increasing your stakes as markets goes in your favor. There are many stocks which have gone through 30-40 % below their peak price.
If one is able to select those stocks then it will reward them.
Happy hunting.

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