Nifty Trend, Prediction, View, Target 31st May 18
Nifty today’s trend was sideways between 10650-10550 spot Nifty levels mentioned and was trading in a volatile manner through the day. The current scenario in Nifty is very interesting. Everyone is super bullish for targets of 11,000 as of now and open interest data shows that every single person is buying on dips but what Nifty chart is suggesting that main trend is lower as we have been saying that we do not dispute that pullbacks will not come from time to time and that is a given Indian stock markets will give pullbacks from time to time but those pullbacks as we have been guiding will end up making lower tops and lower bottom formations. Let us take an e.g. the primary swing top was at 11171 and then the next lower top was at 10930 spot Nifty levels, now the current move pullback has started from 10419 and wherever this pullback will end (details of when and where we see pullback will end has been communicated to our clients well in advance and we have taken trades accordingly) so wherever this pullback ends it will just end up making another lower top so please do not confuse our Nifty view with that of pullback. Pullbacks will keep coming from important support areas but they will not be able to move higher than previous swing tops like 10930 in this case so trade accordingly. As per our analysis, view, prediction, Nifty Trend remains down; expect lower targets and strategy should be to sell on the rise towards resistance areas, do not expect supports to hold out though pullbacks from supports will keep coming from time to time. Near-term resistance is between 10725-10930 and support is around 10400. Break and close below 10375 spot Nifty level will open the gates for much lower targets if you are a long-only trader then below 10375 do hedge your trades and positions or better still reduce long exposure on any rise towards resistance areas.
Next week we have Reserve Bank of India policy meeting and our view is that RBI will be very hawkish and we do see some members opting for 0.25 bps rate hike also, in the last meeting one of the members of the MPC did vote for a rate hike and in this meeting we expect many more members to voice their concerns over recent petrol and diesel price hikes so all and all it could end up being a very hawkish policy and could be on the verge of saying that if crude oil does not cool off we could start the rate hike cycle and that could spook the Nifty even more.
From an Astrological cycle perspective, our view remains that current cycle is down but there are some important cycle zones coming up in the next few trading days and they could end up having a very powerful impact on Nifty Futures (historically these signatures have been seen to have massive impact) so be very alert and nimble-footed.
Good Trading To You!