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SGX Nifty 20th April 2016
SGX Nifty / Nifty Futures today continued its topping process today. Nifty closed the day higher by 64 points at 7914 (Nifty spot levels mentioned). As per our Nifty Prediction / Nifty Futures Tips given to our clients we maintain that our view that this is not a buying area at all and in fact we see this current move as a fantastic selling opportunity (to reduce overall portfolio longs ) and even as an short selling opportunity. We do not see Nifty Futures now moving much higher from here (Minor variations are possible but we do not see a run away Nifty from current prices) and we see a corrective move starting taking Nifty lower from here.
If we look at the sentiment today every person on earth is bullish and everyone is now talking about 8150-8250 levels no one seems to remember that just a few days back they were all talking about 6500 and 6300 and this current mass behavior is a perfect Rahu (North Node) deception signature. We once again are repeating that Rahu is in control of this move which has started on 29th Feb 2016 and it never has nor will allow masses to make money. The masses always have and always will continue to fall prey to illusion that as of now things are just about OK and overall macros will now keep getting better there by allowing further rally in Global and Indian stock markets but we do not see that happening at least for now because we know the broad principles of rahu signatures and the current mood and trader / investor sentiment is perfectly showing the same sentiment indicators that we did see at around 7000-6900 levels. At that point in time Rahu trapped everyone into the bear story now he is trapping everyone into the bull story and is just creating a illusion that things are getting better and most traders and investors will fall for that (like everyone is just talking about longs now) so once Janta is totally into longs and in euphoria he will suddenly force bad news or may just reverse the trend for no reason at all and make it a “Bina kaaraan Mandi” and then towards the end of the correction bring out all the bad news. As all our clients know very well that news is a trailing indicator not a leading one and if our trade is in the direction of the main trend then the news flow will eventually follow us.
If we look at the astro cycle two very important geocosmic signatures have taken place now. Mars Retrograde and Pluto retrograde and its happening in Capricorn so it will be a sudden realization and when again people wake up it might be too late for them and hence the time to act is now. These to our analysis combined using elliot wave, gann wave , time cycles and astro cycles all of them are just saying and conveying one message that Nifty Futures is almost around the top out area and a pullback or rather a correction of the move is likely very soon if not immediately.
If we further look at the larger earnings picture we are not expecting any major results to be good but what we do see happening is that there will be many companies where the earnings will be downgraded further and that will further push the P/E higher. So please do not expect great Q4 results.
Nifty spot support and resistance for tomorrow is at 7710 and 7980. Use rise if any to exit long positions. On dips one can continue to buy MSL, Kesoram, NMDC, Bajaj Hindustan, EID Parry, Renuka Sugar and our new multi bagger (has been communicated to our clients ). We see a great time cycle in these stocks so accumulate them on all dips.
Good Trading To You!