Many of you have been calling me and asking me the path forward for multiple assets so I thought it would be better to out a detailed note to everyone so that everyone understands where we are placed in the overall picture.
Nifty we had clearly predicted around 10600 that we see a retracement rally of the entire fall of 12100-10637 and that retracement rally is currently underway. When Nifty was around 10600 we were predicting a pullback target of around 11200-11400 and as of now, everything is perfectly on track based on our predictions. Going forward we see Nifty topping around 11200-11400 spot Nifty levels and then starting the next leg of the down move which will take us significantly lower from current levels so overall there is much more downside pending in this move and it will be prudent to reduce delivery based long exposure as we will see broad-based damage in the markets and individual stocks will take it on the chin even from current levels. Yes, I do agree that there are some real value buys available as of today but what we see is a market by which I mean the broad market heading much lower from here so even in the best of cases (barring a few exceptions) we do not see investments making much or any money for that matter in the present scenario. The data points that we are following on the ground continue to show a rapid deceleration in consumption patterns and looking at the overall scenario we see lower earnings trajectory to continue so keep that in mind. When to start portfolio building and at what levels to buy we will discuss in some other post but for now keep in mind to exit all delivery longs on rise, assuming that you are overly optimistic on a recovery or stimulus package being provided by the Govt even in that case keep appropriate trailing stop losses ideally the lows made on 23rd Aug 19 should be the ultimate trailing stop loss in case you want to still hold longs with the assumption that Govt or world Govts will provide some sort of tailwind for the markets.
From an astrological cycles perspective we are having a Jupiter square Neptune taking place on Sep 21st 19 and this is in combination to Sun, Mercury, Venus and Mars in a square aspect what this does is creates illusions by illusions I mean false breakout or false optimism by what this does based on our historical references is creates tops in the market within 7 trading days of this +/- so we are in a time band even from an astrological standpoint which is suggesting a lower top formation is on the cards not only for India but across the world and hence we hear USA china trade talks could reach possible agreement but we do not see any agreements whatever temporary truce has been announced will be shortly withdrawn and we will see some massive currency war starting place. Keep that in mind. I have discussed more about the rupee in following paras so do read that also in detail.
Silver I have been advocating strong buying in this since 35000 levels and we continue to remain very bullish on this. As predicted Silver has now come below 46000 and there could still be some more downside in silver which could take place till 8th Oct at 19 at best but once 8th Oct is done we will see some crazy bullish moves in silver some sort of movement that we have not seen in a long long time so as and when we will guide do accumulate silver we see silver moving towards 1 L and yes we still could see 42000 in a panic move but we won’t sustain lower. Those of you who want to buy physical should accumulate this in panic. Gold also based on our predictions has done very well and we continue to see an overall bullish trend in gold once the current pullback is done. We don’t see Gold moving much below 36000 for now and we could easily see 46000 in gold in the coming 18 months.
Rupee too has moved perfectly as we have predicted rupee now we do not see much lower than 70.50 and then we see moving towards the first target of 76. Yes, we do not see rupee being stable and post 2nd Oct we could see wild movements like that we have never seen in the rupee those who are in imports must hedge your positions as we will see some wild movements in the coming time.