The Nifty remains in an uptrend – I believe it is in the beginning stages of a bull market. Like all market cycles, there will be corrections, dips in the ongoing up move.
Now, markets are not made to order. We cannot order a correction that suits us. What we know is that all markets correct. The current decline in the Nifty is part of a correction, that is part of the natural cycle of optimism(exuberance) and pessimism.
Yesterday, just before markets closed, Udayan asked me on CNBC, “have you taken any long positions?”. I explained that since we are in a bull market, after a sharp decline I have just taken some long positions, and, if the markets open lower the next day, I will close the positions immediately.
There is a reason why Udayan is the star of all market anchors. He understands the markets – that much is obvious, but he also understands how each of his analysts thinks, trades and behaves. My view has been consistent – we are in a strong uptrend. If this is so, then Udayan correctly surmised that I may well be looking to go long.
My description of yesterday’s conversation and the thinking behind it was to explain the nature of corrections. I think readers are now smart enough to get the meaning.