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SGX Nifty 10th Oct 2016
SGX Nifty / Nifty Futures was trading in a range of 8810-8555 the range of the last week and as per our analysis we see some more volatility in the coming days, do expect to see the current divergences to start expanding. We do not expect any significant upside movements and we do not see 9200 as most traders are expecting. We could see some interim bullishness on Monday or early Thursday and to play such days we have taken some tactical trades but once this pullback is done we see Nifty and all the global stock markets starting a fall towards the end of this month or may be the first week of Nov 2016. In this immediate term we expect Nifty to move lower and then also fall below the current swing lows also and finally will make a low much lower from current prices. Please keep in mind that in between during these moves which are being played out we will see sharp pullbacks which will stun most traders so trading in and out would be good, sharp volatility will be there, do not expect one side movements hence please trade accordingly. We will keep taking tactical trades like the one we took a few days back in which we exited our shorts and took BTST position and we will keep doing the same as and when we see a trading opportunity and we may or may not inform the same here. If you are trading only on the basis of this post please use appropriate risk management and then only trade. Please keep in mind that we are not duty bound to inform all our trades or investments free of cost here, however once again let me reiterate again we may choose to inform our trades from time to time.
Sugar sector remains a buy on dips and we like Renuka and Ugar sugar in that space. Ugar we had initiated at 20-22 then we booked part at 70 and now have reentered at 38. We feel that Ugar sugar will do very well in the coming time and the Q2 results also are expected to be above estimates do keep a watch on Ugar sugar. Crude Oil Futures have been doing very well in line with what we have been expecting it to do. We have mentioned in our past updates also that longer term crude oil is now in a fresh bullish cycle and we see crude oil prices heading higher from here also heading towards the 60$/bbl mark and eventually even to 72$/bbl but in the near term there could be some minor pullback so on a major pullback we will be buying again. Keep in mind that we do not see Crude Oil Futures breaking below the 38$ mark for now and on any sharp panic which could happen in the next few trading days we suggest buying and accumulating in a staggered manner. Major support for crude oil is at 41-43$/bbl.
Silver and Gold both have cracked in this week in line with what we were expecting and we have started buying Silver in small tranches. Silver we had bought and accumulated between 32K onwards till 40K then we booked at around 47-48K and now we are reentering our bullish trade. We do not see any significant downside in Silver prices and we expect silver to move higher over time. Please keep in mind that near term some volatility is expected in silver so buy only in a staggered manner. Gold too has a good support of 1244 and till the time 1244 is held we see prices could move higher towards 1380-1350 area.
We have short listed our new multi bagger call and we are now in final stages of identifying the counter. If we do get that final update then we will update our PAS clients about the stock. Again we may choose to write that counter’s name and details in public domain or may opt not to disclose the details of the same as of now.
Good Trading To You!