The English translation of the
Hindi word “Dubara” is “again”. The first thing that comes in a Technical
Analyst’s mind when he thinks about the word “Dubara” is a stock market cycle.
A cycle is a chain of events that repeats over time. The outcome might not be
the same each time but the characteristics are quite similar.
Cycle frequencies can both be
short and long, it can last from minutes until thousands of years.
Understanding long term cycles in stock market helps you determine the overall
market trend and similarly short term cycles helps you determine your timing in
the entry and exit points in the stock market. Text Book examples of stock
market cycles widely respected and followed are “US Presidential Cycle” and
“Dow 18 Year cycle”
We are going through one such Short term cycle which is the “India’s Election Cycle”. As per this cycle, Nifty has the tendency to rally few weeks before major elections results are out and then post results it goes either for time wise consolidation or price wise consolidation for 12/13 weeks.
We are going through one such Short term cycle which is the “India’s Election Cycle”. As per this cycle, Nifty has the tendency to rally few weeks before major elections results are out and then post results it goes either for time wise consolidation or price wise consolidation for 12/13 weeks.
