Published on: December 28, 2023
In the stock markets, wealth is generated by seizing the opportunities presented by emerging trends and capitalising on them significantly.
One such opportunity was the Nifty CPSE (Central Public Sector Enterprises) index which emerged as a standout performer in 2023, boasting an impressive 75% gain with just a day left. Its consistency over the past few years makes this performance even more remarkable, posting gains of 38.98% and 23.62% in 2021 and 2022, respectively.
As an investor with 17 years of experience, I can confidently say that the current trend in Nifty CPSE is a rare phenomenon, and one particular chart has caught my attention for its extraordinary implications.
Nifty CPSE Monthly Heikin Ashi Chart
Source: TradePoint
The monthly Heikin Ashi chart of Nifty CPSE reveals an astonishing detail – since December 2020, there has been only one bearish Heikin Ashi candle in 24 months. To put it simply, in almost two years, the trend has been overwhelmingly bullish, making it a fascinating prospect for trend-following investors.
In my investment journey, I have adopted a strategy that involves booking profits when the price falls below the low of a bearish Heikin Ashi candle. However, in the case of Nifty CPSE, this strategy did not trigger, allowing me to stay invested and ride the wave of this remarkable trend.
Recognizing that the Nifty CPSE index itself is not directly tradeable, I strategically invested in CPSE Bees in January 2021 for a couple of compelling reasons.
CPSE ETF Monthly Heikin Ashi Chart
Source: TradePoint
Firstly, the monthly Heikin Ashi candle was bullish, indicating a favourable trend. Secondly, there was an 8-month range breakout, a significant event in my analysis as I follow breakout periods based on Fibonacci numbers, such as 8 and 13.
Fast forward to the present, and the results have been exceptional. The current price of my investment has surged over three times, underlining the success of the Heikin Ashi strategy in capturing and navigating this powerful trend.
With TradePoint and Rzone, you now have the power to conduct comprehensive analyses of ETF charts through various perspectives. Whether you prefer Line Charts, Candlesticks, Heikin Ashi, Point & Figure, or Renko charts, our platform provides you with diverse tools to enhance your analysis. You can take advantage of these features and make informed investment decisions and unlock the full potential of analyzing and investing in ETFs with your Definedge Securities demat account.
In conclusion, the Nifty CPSE’s outstanding performance in 2023 and the fascinating insights from the Heikin Ashi chart showcase the potential for astute investors to identify and capitalise on long-term trends.
