• Negative Divergence
• VIX started rising for the 1st time since Oct’2018
• Nifty facing strong resistance around 12300
• Signs of reversal are even visible in half of those handful of companies which were solely responsible for Nifty gains in the last 1 year
• Nifty PE is at an all-time high
• Falling growth rate for last 2 quarters
• Moody’s cutting India’s outlook to negative
• NBFC Crisis
• 2019 being Auto industry’s one of the toughest years
• Telecom in trouble
• Scam after scam unfolding leading to loss of mutual trust amongst the different stakeholders of economy
• Expected negative impact on India’s economy from Iran oil sanctions
My question here is very simple –
Even if these fundamental factors are only temporary (may be lasting for another quarter or 2) but the fact is that they’re still there and can’t be ignored. Also, looking at it from a chart perspective, one can see that even a long-term upward trending chart doesn’t go continuously straight up without corrections. Market participants do book profits and they try to do it at a level where it is highest but the near to mid-term prospects for it are not so good. So, both technically and fundamentally, Nifty and its components are showing signs of reversal, then what exactly is still making the markets go higher and higher?
P.S. – My observations or interpretations could be partially inaccurate as, quite obvious, I am just a learner in this field with a very short experience as of now.