Nifty Today’s Trend, Prediction, View, Target 3rd Oct
Nifty opened lower and went below yesterday’s low of 10850 and once again everyone were talking about major downside and everyone started talking about lower targets of 10500 and everyone was taking fresh short selling positions as support area of 10850 spot Nifty level was taken out but as we had mentioned that even though Nifty short term trend is sideways in the current scenario it will not be a good strategy to hold on to shorts or to adopt a sell and hold strategy or to sell fresh on the lower side as there are many important time cycle supports in the next few days, in addition to the time cycle supports there are also price and wave support zones in the nearby vicinity and also in addition to both time and price support areas there is also a factor of near term sentiment indicators which indicate that markets are currently too bearish so a combination of time cycle supports + price and wave support zone and extreme sentiment readings where everyone has become bearish for lower side targets of 10500 was a clear indication that in the near term selling was overdone and that selling fresh at levels around 10850 was not the best trade especially when the prices are already at the lower end of the overall time zone. As per our analysis, view, prediction remains that near term trend is sideways and trade in and out for retracement targets but avoid using a sell and hold or a buy and hold for the time being.
Anyways going forward we have the all important credit policy coming up. RBI today did announce some OMO’s to infuse liquidity into the market today. Our expectation is that RBI will announce some more important measures for boasting the overall liquidity of the market which currently is stress it could even happen that a CRR cut could be announced for some period of time as there seems to be intense pressure from North block but the more important point would be the increase of interest rates so we do expect Reserve Bank of India will come in aggressively and hike rates and due to the rupee depreciation we could see the RBI increase rates by 0.50 bps also so whatever happens we could see a sharp increase in rates from the reserve bank of India on 4th but whatever rate hike RBI does it will also do something very aggressively to boost liquidity in the system and that could boost the markets and the Nifty in the near term so watch out for that.
Good Trading To You!
Part of what we did today
10/1/18, 9:14 AM – Glen Drago: Good morning
10/1/18, 9:14 AM – Glen Drago: Hold positions as told
10/1/18, 9:15 AM – Glen Drago: Will update if anything has to be done
10/1/18, 10:52 AM – Glen Drago: Nifty hold 3 parts positional longs as told.
10/1/18, 10:56 AM – Glen Drago: There are major time cycle supports between Wednesday to Monday 8th Oct. In addition to time cycle supports there are major price support zones also in the area of ——- spot Nifty levels. Even below —- there are major supports every 10-15 points. Add to this the oversold situation of the market putting all of this together we don’t see price heading lower from here and maintain a bounce towards —– spot levels. If certain criteria are fulfilled then we could see trend extension but for now we will work with ———spot levels
10/1/18, 11:34 AM – Glen Drago: Nifty buy 4th part at cmp
10/1/18, 11:34 AM – Glen Drago: Confirmation Nifty 4th part active
10/1/18, 11:57 AM – Glen Drago: Delivery Call: Initiating Buy On——- Buy On dips strategy to be adopted. Accumulate Between CMP-400 For Target of ——- In 15 Months
10/1/18, 11:58 AM – Glen Drago: Buy On Dips strategy to be deployed. Do Not Buy In One Go
10/1/18, 12:44 PM – Glen Drago: Nifty book profit in 4th part at cmp
10/1/18, 12:44 PM – Glen Drago: Confirmation Nifty 4th part booked
10/1/18, 12:44 PM – Glen Drago: Continue holding 3 parts Nifty longs as told
10/1/18, 1:55 PM – Glen Drago: Nifty continue holding 3 parts positional longs as told.
10/1/18, 1:55 PM – Glen Drago: If anything else has to be done will update
10/1/18, 2:40 PM – Glen Drago: Nifty Book 3rd Part
10/1/18, 2:40 PM – Glen Drago: confirmation Nifty 3rd part booked
10/1/18, 2:41 PM – Glen Drago: Nifty continue holding 2 parts longs as told
10/1/18, 2:41 PM – Glen Drago: If anything else is needed to be done will update
10/1/18, 2:41 PM – Glen Drago: Hold 2 parts longs as told
10/1/18, 2:43 PM – Glen Drago: Hold 2 parts positional longs now. If Nifty dips due to volatility in the 2-3 days around the credit policy we will be using 3rd and 4th part to trade in and out.
10/1/18, 2:43 PM – Glen Drago: will keep updating if anything needs to be done