Nifty Today’s Trend, Prediction, View, Target 4th June 18
Nifty trend today was that of consolidation around the levels of 10700 exactly as per our prediction and view. Let us now look at the overall picture from Indian stock market perspective. As per our analysis the current move is that of a pullback and as per our view and prediction the current trend is now getting into mature stage sure there could be some more volatility around the corner but overall we do not see this pullback taking much time and post this pullback after it makes another lower top Nifty Futures / Indian Stock markets will resume the main trend which is down and we expect lower targets to be achieved and the fall could be very fast also so extreme caution is recommended / advised to those traders who are totally long in the market expecting targets of 11,000-12,000, we are not in the camp which is seeing that Nifty Futures is heading for higher side targets and we expect Nifty to resume the main trend which is down as per our analysis, view and prediction. Next week is very crucial as Reserve Bank of India will be meeting for its bi-monthly policy meet, regular readers of this website will recall that during the last meeting RBI MPC will sounding a bit dovish and at that point in time we had predicted that MPC will be forced to change its view very quickly as last meeting was under Mercury retrograde period (Mercury rules communication and since it was retrograde at that point in time it ended up giving false or wrong information) but currently Mercury is direct and hence that wrong guidance given by the RBI will be changed very aggressively and as per our view we expect the MPC to be very hawkish in its statements so there is a possibility of Nifty Futures getting spooked by the MPC commentary. Many traders are watching out what the MPC will do as far as rates are concerned but what is more important than any movement in rates is the commentary by the Reserve Bank of India which we expect to be very hawkish and we will not be surprised if the MPC does even end up voting for a rate hike in this meeting itself because as per our analysis, view and prediction we see that Uranus is now in Taurus which rules Banking sector and we could see sharp and quick rate hikes as we have seen in our historical back testing so do not be surprised if policy base rates are hiked by 0.25 bps during this meeting itself but as we are guiding more than what the MPC does in this meeting it is important to see their commentary and guidance.
From a purely technical analysis stand point we see that there are multiple resistances around the corner between current prices upto 10930 and during the next 7-10 trading days and there are some very important time cycle resistances for Nifty as well as astrological resistance zone and we do not feel that adopting a strategy of buying on dips should be done when Nifty is heading into such scenario. Near-term support is placed around the 10570 area but we do not see any meaningful support being held in the near-term as main trend which remains down is expected to resume shortly and we will be seeing lower side targets. As usual if you are only trading on the basis of this post please use your own risk management and then only trade please do not overtrade under any circumstances and please keep your risk in check.
Part of what we mentioned today
“Nifty as per our view, prediction will be —- out in the next — trading days and resume the main trend down. Some source based information is indicating 0—– which as of now we can not confirm but surely once we do get information on the same we will definitely guide. Nifty expected move CMP-10650>>10——- (Intraday) Minor variations are possible but post —– formation we expect Nifty to start the —– cycle from —– onward and we expect a target of——- spot Nifty levels in this round. So till —– is not done on the downside we do not see or expect any substantial pullbacks also it will be a straight line fall but intraday or 1-2 days pullbacks can come which will be used by us to short sell for STBT or for creating intraday shorts.”
Good Trading To You!