SGX Nifty 17th May 2016

SGX Nifty

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

SGX Nifty

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SGX Nifty 17th May 2016

SGX Nifty / Nifty Futures today was volatile. In the initial part of the day Nifty fell to 7772 and then staged a massive recovery all the way towards 7873 (Nifty 50 spot levels mentioned) and after hitting 7873 Nifty once again started sliding and finally ended the day at 7860.

As per our Nifty Futures Tips / Nifty Prediction (and I know this sounds very monotonous ) our Nifty View remains the same. We do not expect prices to sustain on the higher side and yet at the same time keep in mind since Mercury is retrograde in Taurus (which rules Banking sector and in turn currencies ) we do expect to see pullbacks every few days typically between every one to five trading days but these pullbacks whenever they happen will end up making lower tops when observed on larger time frames.  When these pullbacks come they will seem like a trend reversal but in reality they wont be trend reversals it will be a deception game being played by Mercury (which at least till 29th May 2016) will act as though it is the younger brother of Rahu (North Node).  Mercury will keep creating short term deceptions and there by most traders will be trapped in long positions. In addition to this there are now many Indian Stock Market experts who are once again calling the green shoots theory and saying India is a buy on dips market. (No offense to these analyst but just few days back most of them were saying 6500 is a given now and India does not look good and now at 7800+ levels they are the same people who are saying buy on dips. Really can not understand their mind)

Anyways does not matter. Let us do our jobs and let them do theirs. I think most people are wise enough to know whom to follow and listen to. Nifty Share Price / Nifty Chart shows that there is lack of momentum and volumes are declining on the higher side. We once again reietrrate and clarify that our view is not for the next one or two days but a positional view for the next few months. Please understand prices will have to fall significantly before we see any meaningful upsides.  The rally that started on 29th Feb 2016 has been a global rally and there are clear breakdown signals there since Indian stock markets in reality was under performing the Global Stock Market rally I do not see a scenario where Global Stock Markets face a risk off and Indian Stock Markets rally further from here. 

If we look at the overall scenario from a investors perspective then we clearly see that earnings growth is not present and that will eventually keep pushing valuations higher and higher. Under these circumstances it does not make any sense to invest for longer term from the current prices.

Good Trading To You!

Chat Transcript for today is enclosed below

[09:02, 16/5/2016] +91 90040 79145: Gm
[09:02, 16/5/2016] +91 90040 79145: Hold positions as told
[09:22, 16/5/2016] +91 90040 79145: Usdinr tgt 68.10 spot
[10:20, 16/5/2016] +91 90040 79145: wait for msg to add more shorts
[10:21, 16/5/2016] +91 90040 79145: Positional Trade Update Nifty June 7600 Call Hold 1 Part Shorts & Nifty May Futures Hold 2 Parts Shorts. Hold Positions as told till next update
[12:12, 16/5/2016] +91 90040 79145: Hold positions as told
[13:35, 16/5/2016] +91 90040 79145: If anything to be done will update
[14:18, 16/5/2016] +91 90040 79145: Wait for msg to sell more
[14:26, 16/5/2016] +91 90040 79145: Use all dips to buy and Hold Renuka sugar, Eid Parry, Bajaj Hindustand, Maharastra Scooters Ltd (Bse script code 500266), Tata Coffee. Wait for message to reenter Kesoram and Nmdc.
[14:29, 16/5/2016] +91 90040 79145: Nifty Share Price / Nifty Chart is clearly indicating fatigue on higher side and we reiterate we do not see prices sustaining on the higher side. Since Mars, Mercury, Saturn all are retrograde we are seeing some lack of volumes in the Indian Stock Markets. Overall we reiterate these are prices to sell and not prices to buy. We see significant lower side moves from here. Risk reward does not favor buying at all.
[14:29, 16/5/2016] +91 90040 79145: Those who are holding portfolio please use any rise to exit and hold on to as much cash as possible. We will get significantly lower prices to buy.
[14:31, 16/5/2016] +91 90040 79145: STBT Trade Nifty May Fut Sell 1 Part @ CMP
[14:31, 16/5/2016] +91 90040 79145: Confirmation Nifty May 1 Part sold
[14:34, 16/5/2016] +91 90040 79145: Positional Trade Update Nifty June 7600 Call Hold 1 Part Shorts & Nifty May Futures Hold 2 Parts Shorts. Hold Positions as told till next update. Also holding 1 part stbt trade in Nifty May Fut now
[14:36, 16/5/2016] +91 90040 79145: Positional Trade Update Nifty June 7600 Call Hold 1 Part Shorts & Nifty May Futures Hold 2 Parts Shorts. Hold Positions as told till next update. Also holding 1 part stbt trade in Nifty May Fut now
[14:36, 16/5/2016] +91 90040 79145: Hold positions as told
[14:36, 16/5/2016] +91 90040 79145: and wait for further instructions
[14:37, 16/5/2016] +91 90040 79145: if anything has to be done I will update
[14:38, 16/5/2016] +91 90040 79145: please hold as told
[14:38, 16/5/2016] +91 90040 79145: Reiterate Use all dips to buy and hold Renuka Sugar
[14:44, 16/5/2016] +91 90040 79145: Usdinr Continue Holding 1 part long as told till next udpate
[14:44, 16/5/2016] +91 90040 79145: Usdinr tgt 68.10 spot
[14:44, 16/5/2016] +91 90040 79145: Positional Trade Update Nifty June 7600 Call Hold 1 Part Shorts & Nifty May Futures Hold 2 Parts Shorts. Hold Positions as told till next update. Also holding 1 part stbt trade in Nifty May Fut now
[14:44, 16/5/2016] +91 90040 79145: Please strictly follow msg and trade
[14:45, 16/5/2016] +91 90040 79145: please do not do any interpretation trades