SGX Nifty 11th Feb 2016

SGX Nifty

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SGX Nifty Live

LTP  8,576.00   -128.00   -1.49% High 8,710.00 Low 8,546.50

SGX Nifty 11th Feb 2016

SGX Nifty / Nifty Futures today once again opened lower following weak global cues in the second half though European Stock markets were in the green Indian Stock Markets continued to exhibit some degree of under performance mainly on account of some selling and redemption pressures from domestic funds. As per our Indian Stock Market tips / advice / Nifty Prediction we do not see Nifty sustaining on the lower side below 7300 spot levels for long and we see targets of 8800-9000. Traders and investors must use this current dip below 7300 as a great buying opportunity and must accumulate high quality stocks and hold them on.  We have recommended Buying MSL, Kesoram Ind, NMDC, Renuka Sugar, EID Parry, Bajaj Hindustan for medium term delivery and from a shorter term we have recomended buying into Tata Coffee and Cairn India also. We expect Cairn India to head towards 150+ in the near term as International crude oil prices are expected to rebound towards 48 $/bbl and we do not expect to see Crude oil going below 26-27$ / bbl. So being cash rich we can expect Cairn india to do well in the short term once above 150 we will review this trade. Also Tata coffee looks good to us as we see international coffee prices moving higher. Most of the regular readers and clients of this website are well aware that we are very bullish on agricultural commodties over the next 23 months time frame and now Tata Coffee is at the right price to begin accumulation. As per our analysis we feel Tata Coffee will do very well in the next 23 months and we see a target price of 225 for the same.

Coming back to Nifty we have as of right now deployed 50 percent buying from a positional trading stand point and we will continue to buy at appropriate supports or low risk entry points or on consolidation and breakout. We are once again repeating that whatever price you buy below 7300 spot Nifty will be a great price as on the upside we see targets of 8800-9000 and on the downside we do not see any real significant move so please understand one of the corner stones of successful trading on a consistent basis is risk reward ratio and as per our understanding we feel it is totally in favor of buying on dips so please keep this in mind. Further it must be clearly understood that this bullish phase that we are predicting will only be a major pullback, we do not see any major changes on the ground so effectively it will just be another “bina karaan tezi” Logic will not support this rally. It is possible that share market news may also not support it (as most of you guys know I do not track share market news flow) but this bullish cycle will just expand valuations and create total froth at the end and it will also suck in the most bearish of people. Janta will start talking about 12500 but we don’t see that happening and when janta starts talking of 12500 it will be the topping area so please keep that in mind.  Today we know everyone is talking about 6600 but we do not see that coming now it will come and possibly even come till 5851 but post this bullish cycle as of right now we do not see much downside and buying from here on from a positional stand point will make massive money. Another important point you must understand is that can we see 7100 of course we can. Will that last we don’t think so. Will buying and holding below 7300 lose money from a 90-180 days view? we don’t think so. We feel this is one of the best times to buy Indian equities.

Nifty spot support and resistance is at 7111 and 7325. Use all dips and panics to buy and hold Indian equities and Nifty Futures.

Good Trading To You!