SGX Nifty 19th 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 19th May 2016

SGX Nifty / Nifty Futures today opened lower and then once again gave a pullback towards 7881 (Nifty 50 spot levels mentioned) level to close marginally in the red. Finally Nifty closed the day flat.

Tomorrow is a very important day as election results will be declared in 5 states. If BJP does not gain in at least a  few states then we can see some nee-jerk reaction tomorrow and that may even continue into Friday. Venus will be changing house shortly and that too can add to the negative sentiment so please keep that in mind.  As per Nifty Charts are concerned we do not see any strength in them and we expect overall weakness to continue post this ongoing consolidation. Once again a notable feature was that volumes were consistently declining on the higher side and that to our minds is a sure sign of distribution. We do not expect Nifty to sustain on the higher side. As per our Indian Stock Market analysis / Nifty Futures tips our overall Nifty view remains the same and that is Main Trend is down and regular pullbacks will keep coming till 29th May 2016 thanks to Mercury Retrograde motion in Taurus. USDINR can move past 68.10 in the near term.  Post 29th May 2016 a trending move can be expected. Nifty share price is not showing any strength on the higher side.   We do see significantly lower side targets for Nifty Futures and it does not make any sense to be invested in most large caps for now. We have advised our investor clients to remain on as much cash as possible or in some cases also suggested to move to fixed income as there is still time for those lower side levels.

On dips buy and hold Ugar sugar, Eid parry, renuka sugar, bajaj hindustan, tata coffee. Kesoram and Nmdc wait for our message to reenter.  At this stage avoid banking stocks both private sector banking and public sector banking as the problems are still not over as per our analysis and we expect much more adjustments taking place on the NPA front. The real problem is that we are expecting fresh slippages in the coming time and that has not yet been factored in to the price.

Chat transcript for today

[09:00, 18/5/2016] +91 90040 79145: Gm
[09:00, 18/5/2016] +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
[09:00, 18/5/2016] +91 90040 79145: Usdinr hold 1 part long as told
[10:03, 18/5/2016] +91 90040 79145: Hold positions as told
[10:57, 18/5/2016] +91 90040 79145: if anything needs to be done I will update
[11:05, 18/5/2016] +91 90040 79145: Use all dips to accumulate renuka sugar, eid parry, bajaj hindustan, ugar sugar, tata coffee. wait for msg to reenter kesoram and Nmdc
[11:08, 18/5/2016] +91 90040 79145: please update your msg tone to caller tone for our msg.
[11:17, 18/5/2016] +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
[12:12, 18/5/2016] +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
[12:18, 18/5/2016] +91 90040 79145: Hold positions as told
[12:23, 18/5/2016] +91 90040 79145: If anything needs to be done I will update
[12:41, 18/5/2016] +91 90040 79145: Buy and Hold Renuka Sugar on dips
[14:25, 18/5/2016] +91 90040 79145: if anything to be done I will update
[14:25, 18/5/2016] +91 90040 79145: hold positions as told
[14:32, 18/5/2016] +91 90040 79145: Usdinr remain hedged / hold 1 part long as told