Nifty 50 may hit 20,600 in next leg of rally, says Kavita Agrawal of exp-invest.in
The underlying momentum of Nifty is quite bullish, said Kavita Agrawal, CMT CFA, CEO of exp-invest.in. In an interview with Mint, Agrawal said swing trading is a high-risk risk high-reward alternative to options trading which is high-risk low reward. The underlying momentum of the Nifty 50 is quite bullish. The daily timeframe suggests this is a mere breather and the level is 20,000 is a major psychological resistance so it’s natural that the market has taken some correction.
My target for Nifty is 20,600 in the next leg of the rally. Bank Nifty's key support is 44,200, the 100EMA (exponential moving average) on the daily timeframe. The target is 49,500 owing to a strong trend line resistance which caused the corrections in Oct ‘21, Feb ‘21, May ‘19, Jan ‘18, Feb ‘15, and Nov ‘10.
Each of these corrections was in the range of 12-60 per cent. That’s quite a significant correction on a broad market index. The whole landscape of options trading is designed in such a way that a small trader will lose money.
The fact is that even if your direction analysis is right due to theta decay a small trader will still lose. To succeed in trading we need to buy low and sell high, in options trading you’re trying to go uphill on a slippery slope. Swing trading on the other hand rewards you for good directional analysis and offers optimum portfolio growth when done with stringent risk management.
Swing trading is a high-risk risk high-reward alternative to options trading which is high risk low reward. Swing trading offers immense opportunities for everyone to participate in stock trading with a frequency which suits their lifestyle and workflow. However, it involved considerable market risk.
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