CBSE ETF is a very good option for those who want to invest money in the best PSU sector company. But since the beginning of March 2024, this CPSE ETF share price has continuously fallen.
In this article we will talk about why this ETF is falling and when will it start rising.
India’s best manufacturing PSU sector companies come under CPSE ETF and these companies have been divided with perfect percentages.
After all, why is CPSE ETF falling in March 2024?
See, if CPSE ETF is falling, it does not mean that there is a huge decline in the market.
The thing is that the PSU sector companies have grown very fast in the last two months i.e. January and February.
CPSE ETF had given returns of about 22% in January and February. This return is not for 2 months together, this return was given by this ETF within a month.
Now if you compare the returns of this ETF with any good stock, they are very high. The way it was giving returns, it seems like it is a penny stock, not an ETF.
Now it is obvious that when a sector grows at such a rapid rate, there is bound to be a correction in it.
So this decline is due to the correction coming in the PSU sector. After making some corrections, this sector will start growing even more rapidly.
For how many more days can this decline be seen?
The degradation in this ETF is not a big deal because CPSE ETF is a volatile ETF.
If we talk about how many more days this decline can be seen, then it cannot be said with certainty that this decline is yet to come.
But if we look at its technical terms like the RSI indicator, it has fallen a lot. If we talk about it in technical terms then falling more than this becomes a big deal.
So we do not think that now this level is going to fall much, maybe you may see another decline for one or two days.
But this decline is going to be the last because after this we will see it increasing by 7% to 10% only in two or three weeks.
Is this the right time to invest in CPSE ETF?
Yes, we can say that this is the right time to invest in CPSE ETF. Because while selecting ETF we see a technical factor named RSI Indicator. If you apply this indicator on a time frame of 1 hour, you will find that its RSI has reached around 30.
We generally see that according to this indicator, if any ETF reaches this RSI then it is the right time to invest in it.
So if you want to get good returns by investing in CPSE ETF, then we would advise that you invest now in this ETF.
But before investing, you must do a market analysis from your side so that it becomes easier for you to buy ETFs at the right time.
Can we decide our targets for the short term by investing at this time?
CPSE ETF is so low at present so if you are planning to invest in it, this ETF will immediately pack a bounce and increase its share price.
So if you want to invest in it now with the intention of short-term investment, then you can go for it.
This ETF is ready to give you very good returns in a few weeks and these returns will range from 7 percent to 10 percent.
Conclusion
If we conclude the article, we get all these 5 points in the conclusion.
- The reason for the fall of CPSE ETF is the correction in the manufacturing PSU sector.
- CPSE ETF is a volatile asset, hence this type of degradation is often seen in it.
- The RSI of this ETF is now around 30, which means that if this ETF falls, it will fall for one or two more days, after which the ETF will start increasing.
- This account will give you returns ranging from 7% to 10% within 2 to 3 weeks.
- Now this is the right time to invest in this ETF. You can also invest in it by deciding on long-term or short-term targets.
Note– Investing in the share market can be risky, hence understand the market well and invest only after understanding all the technical terms.