Nifty 50 – Bank Nifty 29th October – 2nd November 2018
In this week’s video on Nifty & Bank Nifty, I have again highlighted how Nifty and Bank Nifty are below their 200 DMA and any aggressive trade on long side should be avoided. For short selling opportunity, both Indices must retrace so that better risk reward trades can be executed.
Through Market Profile, I have shown on Bank Nifty chart and Nifty chart how structure of overlapping profile is still being maintained. For Nifty, structure of overlapping profiles was weak last week and we saw this getting violated yesterday.
I then move to Mutual Funds as an Investment medium and show which times are best to start building a Mutual fund portfolio for the long term. Currently, 45% stocks are 1 standard deviation away from fair value and historically this has been a good place to begin Systematic Investment plans for the long term.
I have explained how money allocation works differently in Trading and in Mutual fund investments. In Trading, we add positions as price moves in favour. But, in mutual funds, it’s important to allocate small amount of money at set regular intervals to benefit from fall in price since the time frame of investment is always longer.
I then move to giving some pointers on what one should look at while selecting Mutual Funds. I have given 5 key rules or guidelines one must focus on in order to select mutual funds for investment. I have also explained my current long trade attempt in Bank Nifty and how I have hedged this position in order to cope up with volatility and uncertainty.