6% drop in Nifty is a buying opportunity
Few followers panicked when the Nifty had a sudden drop of 6-8% within the day and caused panic and some of the late buyers were caught off guard or get margin calls............
I had said before, when you buy an index , it is a basket of blue chips companies in the respective country represented by different sectors. So , you got margin of safety in terms of sectoral diversification. Unless the entire market crash , then from a weekly, daily chart perspective, it is still riding on a bullish trend.
You can see how quickly it falls through the channel and yesterday, it has recovered more than 60-70% of the previous fall. So, I don't understand, what is the panic all about ?
As a trend follower, there is nothing to do except ride the trend until it changes.......
I had said before, when you buy an index , it is a basket of blue chips companies in the respective country represented by different sectors. So , you got margin of safety in terms of sectoral diversification. Unless the entire market crash , then from a weekly, daily chart perspective, it is still riding on a bullish trend.
You can see how quickly it falls through the channel and yesterday, it has recovered more than 60-70% of the previous fall. So, I don't understand, what is the panic all about ?
As a trend follower, there is nothing to do except ride the trend until it changes.......
Note
Praise God, congrats to those who went LONG at 22,000 price level.......
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