SGX Nifty Futures
(Change Vs Today’s Nifty Futures (NSE) Closing)
Nifty Futures 27th Jan 2017
Nifty Futures / SGX Nifty continued the rally which started at 7892-7900 area. A few days back when Nifty was around 7900 there was a total consensus in the market that Nifty is heading lower from 7900 towards 7600-7500 area and on the higher side, Nifty can maximum rally to 8250. At that point in time, we had clearly mentioned that even though the longer term target is 5872 in the near term we do not see much downside and short selling around 7900 will not make much or any money. Our view has been absolutely perfect. Now let us look at the current market scenario the very same traders who were short selling for 7600 targets at 7900 are now buying for the target of 8800-8900. Has anything changed in the market? I do not think so it is just that the perception of the masses has changed for the moment and once again we are clearly saying that longer term target is 5872 please keep that in mind and trade and having said that does that mean Nifty can not move higher from here sure it can but will it sustain on the higher side? As per our analysis, we do not think so Nifty will sustain on the higher side but when to sell, where to sell and what to sell is very important. This is not an area of a blind trade. Traders will have to be very careful while trading here.
Today one of the most important Astro cycle changes is taking place in the heavens. Saturn will change house as per Vedic astrology system and we are very clear that longer term that is not good for the markets over the next 12 months perspective but please keep in mind that the near term over the next few months trading will be very tricky and challenging. A lot of people who were short have been forced to cover up shorts and now are buying assuming the budget will be very good and Reserve Bank of India will cut rates but we do not think that buying now will make much money from a portfolio standpoint (at these valuations buying has never made money and we do not think that this time it will be different). If you are holding portfolio long positions we had told you when Nifty was at 7900 that you will get better prices to exit and now is the time to start exiting portfolio longs. Please do not try to catch the final top as the downside targets are 5872 there is far more you could loose if you get stuck around these prices and when we say that exiting now is a good trade please keep in mind that Nifty can still move higher from here.
Overall there are many important changes taking place as far as time cycles and Astro cycles are concerned and we do not think that buying at current prices is advisable. There is not much remaining on the table now to gain from current prices and even if the budget may come with minor positives we feel that all the good news is front loaded and in the price. At 8600-8700 Nifty we feel that markets are richly valued and we do not see any money being made on a 12-month forward basis with the exception of sugar stocks. Avoid getting too excited about markets moving higher from current prices and it is time to be cautious rather than euphoric. If you are only trading on the basis of this post please use appropriate risk management and then only trade. Please never over trade.
Good Trading To You!