Technical Strategy: Golden Cross
Rally on track, time to board for 13000... Read more...

Latest Updates ICICIdirect Research Update

Community User Posted on 12:59pm 15-Apr-2019

Technical Strategy: Golden Cross

The benchmark indices rallied 18% since October 2018, aided by strong foreign inflow as central banks across the globe turned dovish.

As we approach the crucial event of General Election 2019, the price structure of the Nifty indicates a major shift in trend direction as it recorded a “Golden cross” along with similar crossover in index constituents collectively contributing 73% to the index weight. This makes us reinforce our positive stance by revising our earmarked target upward at 12800 - 13000 by FY20, as it is the confluence of:

  •  Since June 2003 in seven out of nine occasions “Golden Cross” on the Nifty has produced minimum 15% return in the following year
  • • It also corroborates our CY19 Technical Outlook, providing minimum 15% return post general election, that projects a target of 13000
  • Bottom up approach also validates our target of 12800
  • According to classical technical evidences, 161.8% external retracement of last major decline (from August 2018 high of 11760 to October 2018 low of 10005), placed at 12850

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