Nifty Futures 3rd April 2018
Nifty Futures today closed up in the green by around 100 points and moving perfectly in textbook style format. We were expecting Nifty Futures to move up and Nifty did exactly that so as of now everything that is taking place is exactly in line with whatever we have been estimating.
From a sentiment perspective, most traders were not expecting markets to move higher especially after the opening and all the problems and news flow that was coming out from Icici Bank but the markets still moved up and closed at the high point of the day. Most traders are having a consensus view on the Indian Stock market / Nifty Futures that on any rise sell and now the stop loss or consensus stop loss for all of them is around the 10240-10250 spot Nifty level. If this area is taken out we do expect some powerful short covering taking place in the Indian stock market / Nifty Futures because as of now no one is expecting any meaningful pullback nor is anyone bullish in the near term. We are not talking about the people who are bullish all the time the general bias on the street is very clearly towards the bearish scenario and everyone is having more or less the same stop loss so when everyone is trading and doing the same thing in the market we do not expect that event to play out. Please do not confuse our near term outlook with longer term outlook on Indian equities. We are not suggesting for one minute that medium term trend is up and Indian equities will make great money from here onwards but all that we are suggesting is that in the near term selling is over done and that selling every rise in the market for now will not be the best strategy to adopt. There will be a time when we will get out totally from longs taken to trade this near term consolidation and once again reenter shorts but for the immediate near term we do not suggest remaining short in the markets.
In the coming days we do see some more choppy and zigzag movement to take place. We will see prices moving up and down and keep hitting stop loss of day traders so those who generally day trade must be very careful and be very nimble footed and get in and out very quickly.
Many of you have been asking about what to do with Icici Bank. Regular readers of this website are well aware that we have not been bullish or even neutral on Icici Bank and we had mentioned long back that Icici Bank also has its own set of problems. From a pure technical perspective the eventual target for Icici Bank is around 160 but in the near term we see support around 250-255 area so holding 250-255 area in the near term we could see a bounce in Icici Bank however we do not see any sustainable rally and we do not think that from a valuations stand point Icici Bank has still reached deep value levels.
Part of what we recomended today
4/2/18, 8:41 AM – Glen Drago: Gm
4/2/18, 8:42 AM – Glen Drago: Nifty is stays stable above 10230 spot Nifty after 11.30 am we will see 10350-10330 levels today
4/2/18, 8:43 AM – Glen Drago: Continue holding longs as told as we expect choppy movement taking place overall but with positive bias for the near term
4/2/18, 8:43 AM – Glen Drago: We don’t recommend buying for portfolio or any other longs for now just keep this as a trading bounce that’s it which will end around —— levels
4/2/18, 8:44 AM – Glen Drago: Will keep updating if anything needs to be done
4/2/18, 8:45 AM – Glen Drago: Crude oil hold 1 part Short as told on rise we will sell 2nd part if need be
4/2/18, 9:16 AM – Glen Drago: Hold positions as told
4/2/18, 12:56 PM – Glen Drago: Hold positions as told
4/2/18, 12:57 PM – Glen Drago: Nifty is expected to be choppy with zigzag movement with a positive bias taking Nifty higher slowly as this is nothing but a pullback taking place
4/2/18, 12:57 PM – Glen Drago: Hold as told
4/2/18, 12:57 PM – Glen Drago: If anything else to do will update
4/2/18, 3:03 PM – Glen Drago: Hold positions as told
4/2/18, 3:04 PM – Glen Drago: If anything to do will update
4/2/18, 3:19 PM – Glen Drago: Nifty Fut book 1 part
4/2/18, 3:19 PM – Glen Drago: Confirmation Nifty Fut booked 1 part
4/2/18, 3:19 PM – Glen Drago: Nifty continue holding 2 parts longs as told
4/2/18, 3:20 PM – Glen Drago: Nifty 10200 April Put hold 1 part Short and Nifty 10300 April Put hold 1 part Short as told
4/2/18, 3:20 PM – Glen Drago: Hold shorts in puts as told means we continue to be bullish but holding bullish positions via put options short trade
4/2/18, 3:21 PM – Glen Drago: As up move will remain sluggish and slow and choppy in a zigzag movement
4/2/18, 4:17 PM – Glen Drago: Nifty Update For 3rd April 2018 http://www.mallavv.com/sgx-nifty/nifty-futures-3rd-april-2018.html
4/2/18, 7:38 PM – Glen Drago: Crude oil hold 1 part shorts as told
Good Trading To You!