Nifty Futures Technical Analysis outlook, View, Prediction, Target, Resistance and Support levels
Nifty Futures today closed the day lower along expected lines although yesterday night there was a general expectation among market participants that markets will zoom higher today because of BJP forming Govt in Karnataka, Regular readers of this website are well aware that we had predicted well in advance that we till the swearing in ceremony does not take place we could see some volatility in the markets and that is exactly how Nifty Futures has behaved, many of you have been asking me on what I see on the astro cycle about will BJP be able to hold on to the Govt the answer I feel is no I do not think that BJP will be able to continue in power in Karnataka for a long time and since the start we were of the view that the current Govt who will come in Karnataka will be a coalition Govt and will not be a Govt who will get absolute majority, anyways that aside from a Indian stock market view we have been prediction that regardless of whoever forms the Govt is irrelevant from a stock market perspective and that markets had priced in a BJP victory anyways and hence we did see reversal and sharp downside in the markets have started from 15th May which we had predicted based on multiple analysis which includes Elliot wave, Gann wave, Time cycle and astro cycle well in advance but we are not saying the reason for the fall is the election outcome, markets had to turn regardless of the outcome and was just waiting for the event to pass and hence post the even we have seen sharp trend reversal in the markets and many are wondering if this is a good buying opportunity but as per our view we do not think that this move lower is a buying opportunity we feel that the main trend which was down has resumed and we will see much more lower side targets in the coming weeks, please keep in mind the fall could even resemble the sharp decline we have seen in Jan 2008 and hence we are of the view to remain very alert and manage your risk properly. As per our analysis our view, prediction remains that Nifty Futures trend has turned down and our prediction and view are that we will see much lower targets from current prices. I am not suggesting that will happen overnight it is possible also but that is not the likely or more higher probable scenario but the point that I am trying to communicate is that strategy of buying on dips will not be making money for now when we take the broader Indian stock market view. Many traders are only looking at the Nifty charts in order to arrive at any conclusion but when we take a look at some of the leading indicators charts like USDINR we see that USDINR will be heading for targets of 72 and we will not be surprised to see sharp depreciation in the USDINR pair starting next week where there could be some sort of a near-term panic situation within the Reserve Bank of India. Also, there has been a lot of talk about how crude oil futures has topped out and our view and prediction for that is we do not see any signs of crude oil futures topping, for now, we expect crude oil futures to move towards even higher side targets from current prices so we are not in the camp that is expecting crude oil headwind for the Indian stock market to evaporate it will only get more problematic for the near-term.
As of today Nifty spot held the 10700 area for most part of the day and was seen consolidating around 10700 but eventually we are not of the view that these supports like the one around 10700 will hold for many days or time, since the move could gather pace on the downside we could see supports just being taken out very swiftly and that must be kept in mind at all times. As usual if you are only trading on the basis of this post please use appropriate risk management and then only trade. Please do not over trade and manage your risk at all times. There are multiple resistances on the higher side and on any bounce, if it comes it would be a better strategy as per our analysis to exit and get out on as much cash as possible. Immediate near-term resistance is around the 10930-10820 spot Nifty levels and minor support is currently around the 10600 spot Nifty level which was the last minor swing low.
Good Trading To You!