While the bullish rally of Nifty hitting lifetime high 6700 is welcome, and it has given good profits on long-positions on beaten down stocks like SBI, DLF, etc, the concern is that Nifty is now rising while momentum is falling, and the momentum of the current rally is still lower than the momentum of Nifty rally in Sep 2013. Life time high with lower-grade momentum is not a good sign. Conclusion: unless momentum picks up in April, Nifty may come down to 6300 in April.
Reliance Capital has started Nifty ETF from Nov 2013, and the adoption is still catching up. This ETF is 1/100 unit of the Nifty index. So at Nifty 6000, the ETF will be at 60.
Stock Name: R SHARES NIFTY ETF (or Rel Nifty ETF)
ICICI Direct code = RELET2
Reliance Mutual Fund appears to be maintaining liquidity in this ETF to enable investor adoption, which is good. As the liquidity is not high yet, this ETF is best suited for investors who want to buy 100-500 ETF shares per purchase, and hold them for over a year. This ETF is not yet suitable for trading, however, it could be ready in 6-12 months. As of now, Nifty trading is best done via Nifty futures. Continue reading Reliance Nifty ETF
Goldman Sachs Nifty ETF (the best ETF for Nifty investments in India) has been moving is a reliable envelope for last 2 years. Current downside during year 2014 is 575, which would coincide with Nifty 5700. Upside band is at 675, which would coincide with Nifty 6700. That’s the 1000 point range for Nifty in year 2014. A visit to 5700 can happen by end-March 2014. There further downside targets till Nifty 5400, which may also materialize in case of sudden market sell-off. Therefore, Nifty investors must remain cautious, holding adequate Put options till June-July to protect long positions, which in turn should payoff in later part of 2014.