Nifty Futures / SGX Nifty Trend Remains Down

SGX Nifty Futures

LTP   10,940.00   +26.00 +0.24% High 11,041.50 Low 11,001.00 (Change Vs Today’s Nifty Futures (NSE) Closing)

SGX Nifty

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Nifty Futures / SGX Nifty Trend Remains Down

Nifty Futures / SGX Nifty continued to slide down in a slow manner. Many analyst / traders who follow general technical analysis will now conclude that a breakdown has happened below 8500 area which was acting as a support for past few months. If we look at the wave structure we have been saying this that pullbacks will come and sure intraday pullbacks did come but they did not sustain. In a similar manner daily pullbacks will also keep coming but we do not see them sustaining and the market will keep making lower lows. On the daily chart the immediate target for this wave is 8167 spot Nifty levels but please keep in mind that does not mean sell any where and any how. Pullbacks will keep coming from time to time and if you are only trading on the basis of this post then please use appropriate risk management and then only trade. Please do not over trade and manage your own trading risk and trade. We are providing our overall view here and if we see a pullback then we may exit our shorts and trade long for the pullback and reenter shorts where ever we see that the pullback is ending. So please keep in mind we may choose to do tactical trades from time to time and we may choose to report them here or we may choose not to. It is not mandatory for us to update all our trades here. Please keep that in mind and then only trade if you are trading only on the basis of this post.

Overall the current scenario is that liquidity from the global central banks are going to be supportive for the market in the immediate term and valuations will act as a head wind so those that will not allow a fast fall in the immediate term and whenever slightest of value emerges in the market that will be bought into but that buying as per our analysis will not make any money in the medium to longer term and we say this because in our historical analysis of various wealth creation models we have seen that all investors who have made wealth have always bought cheap and bought a company with a good management and almost all of them have bought companies where earnings growth was visible. As of today we do not see many opportunities like that in the market so we do not recommend buying into any dips from a investment perspective. Trading in and out is a different ball game all together.

Yesterday FED did not hike rates but has guided for a Dec rate hike of 0.25 Bps and we do not see that markets will be waiting for long to adjust for that. As we have said yesterday that regardless of the event markets are going to sell off and a risk off trade will begin globally and locally. Low earnings growth, High valuations and extreme bullish sentiment these are the ingredients for a global sharp risk off but in the near term do expect choppy moves in Nifty Futures / SGX Nifty.

Good Trading To You!