Nifty Futures / SGX Nifty Trend Remains Down

SGX Nifty Futures

LTP   8,923.00   +5.00 +0.06% High 0.00 Low 0.00 (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!

26 thoughts on “Nifty Futures / SGX Nifty Trend Remains Down

  1. Sir,
    Your analysis bang on target. Today Nifty closed below 8530 convincingly and clearly looking weak now. You mentioned 8167 as immediate target, so does that mean we see 8167 levels before any major pullback of say 100-150 points on Nifty?

    Regards
    Anpat2015

    1. “”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”” short term, trading, strong pull backs possible 🙂 I feel market is tired of going up, but still not ready for a dramatic fall like 1625 pts fall on August 24 2015.

  2. The fall so far from 8950 seems to be corrective in nature with so many pulbacks.. Isnt this down move supposed to be impulsive? Or the impulsive move will start later only when the distribution is done?

  3. Sir,
    Want to bring to your notice one small point. Some ads represented on this forum (sometimes) look inappropriate for this forum. Kindly check on it if you too feel the same.

    Regards
    Anpat2015

  4. Sir usd/inr any update. I bought november futures @67.30. Nifty fell 200 points but usd futures did not rise. Very strange !!

  5. Hi Glen,
    Shree Renuka Sugars continues to drop. Below what level would you rethink your prediction? Should we continue to hold even below 14-15?

  6. great guidance sir. thanks alot. sir u feel clinton is goin to win so any chance of temporary rally after election. bcoz now markets are falling bcoz trump is giving competition to her in polls

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