SGX Nifty 21st Sept 2015

SGX Nifty

161.77

Index Last High Low
Nifty Future Error parsing: Query returned empty response Error parsing: Query returned empty response Error parsing: Query returned empty response Error parsing: Query returned empty response
Nifty Future Error parsing: Query returned empty response Error parsing: Query returned empty response Error parsing: Query returned empty response Error parsing: Query returned empty response
CNX Nifty Spot 7879.50 7880.20 7837.70

SGX Nifty / SGX Nifty Futures / SGX Nifty Charts / SGX Nifty Live / Nifty Trend / Nifty Prediction / Stock Market Tips for 21st Sept 2015

SGX Nifty yesterday in the morning opened higher on expectations of a rate cut Reserve Bank of India however in second half of trade Nifty hit a top of 8055 and then started sliding in line with Global cues / Stock Markets finally SGX Nifty closed the evening session at 7930. Based on weak global cues we expect a weak opening on Monday Morning. Yesterday as per our Nifty Prediction / Stock Market tips we clearly mentioned that the current pullback from 7500-7600 is almost done and we do not see Nifty sustaining at higher levels, we also mentioned clearly to start exiting long positions and get on to as much cash as possible. We maintain as per our Nifty Prediction / Stock Market advice that Nifty does not have significant upside from current prices and we expect the down cycle of 4th March 2015 to resume anytime. When Nifty was at 7550 entire world was sacred and in panic and was expecting 7200 we clearly mentioned do not panic at lower levels in fact in our Nifty Trend Prediction we clearly mentioned to average trapped longs and then exit on pullback. I hope our advice has helped you once again. Now we are clearly saying risk reward ratio is not In favor of buying at current prices. (Details of targets and move have been given to clients)

On 9th Sept 2015 our Nifty Prediction / Stock Market advice was that at lower levels do not short (please refer the link below and see what we had mentioned)

http://www.mallavv.com/sgx-nifty/sgx-nifty-9th-sept-2015.html

Yesterday Jupiter was in opposition to Neptune (This geocosmic signature has a 90% + probability to change the trend of the Stock Markets Globally). Mercury went retrograde and Saturn moved to Sagittarius (western astro) since Mercury is retrograde expect massive rumors to be floated and it will trick most traders to get into wrong side of the trade (Like Janta was bullish today and it trapped Janta in longs) so extreme caution is advised. Trade light and trade safe. As per astro cycles and time cycles massive volatility is just ahead of us. On 24th Sep 2015 Pluto goes direct (again this geocosmic signature has a very high correlation in Indian Stock Markets for sudden panic. Watch Out for that) and the Mars will square Saturn on 25th Sep 2015. (Mars is aggressive and Saturn Is reduction) so does it mean aggressive reduction in equity prices? We will wait and see but with so much happening it’s better to be safe than sorry. I am consistently advising to be careful because “Siirr sallamat pagdii pachas” There will be no marks to guess and trade in this current environment without proper risk management.

SGX Nifty / SGX Nifty Futures Minor Trend is down. SGX Nifty / SGX Nifty Futures Major Trend is also down. Nifty support for tomorrow is at 7885 and resistance is at 8130. Sell Nifty Futures on rise towards small stop loss points / resistances. SGX Nifty Live Updates will be given.

USDINR Update

USDINR plunged yesterday after the FOMC meeting but we do not expect significant downside from here on. On dips we will be accumulating USDINR for targets of 70-72 thanks to Mercury retrograde USDINR will be seeing sudden sharp volatile moves and even the Reserve Bank of India is going to wonder what’s going on. They say they are here to curtail volatility and I am sure RBI’s ability to do that is going to be challenged.

Sugar Sector Update

This update is for investors I am updating on sugar sector after a while now and my view remains the same. Buy and accumulate sugar stocks on dips and panic. You must understand why I am so bullish especially in sugar sector and that is because the current viability of the sector has to be changed by the Govt of India and the respective state governments. All sugar companies in India are in total mess today because they buy sugar cane at a higher price and then are forced to sell raw or polished sugar at lower prices so effectively the bigger the crushing capacity of the company the bigger the debt and bigger the mess. Now to resolve this current crisis Govt has tried everything given interest free loan and many other measures have been taken but the basic problem has not been addressed that is either allow sugar to be sold as per international prices or decrease the MSP for sugar cane as per the international sugar prices. No business will ever be viable if you buy raw material at higher price and sell finished goods at lower price. Now the current situation is that the sugar mills have no money remaining to buy sugar cane from Farmers who land up at their mills so there is no other option left for the Govt other than decontrol of sugar.

Now lets go back in history and look at similar situations because W D Gann said Future is nothing but a repetition of the past. Indian Oil Corporation, BPCL, HPCL were effectively doing the same business and loosing money. They bought crude oil at higher price and sold petrol, diesel and other petro products at a lower price and that forced to incur recurring losses it reached a point where these oil marketing companies had no money left with them to buy crude oil from the international market. At that point in time Rangarajan committee recommended go for Petro products decontrol and today we have market driven petro product prices. See how the situation is identical no money to buy crude in one case and in the other no money to buy sugar cane from farmers. Hence decontrol of sugar is on the cards and Govt of India has no other option left.

What happened when decontrol took place in petro products ? IOC,BPCL,HPCL became multi baggers. What will happen in sugar stocks ? they also will become multi baggers but the returns here will be far more significant than OMC’s returns that is because Internationally sugar prices are at 30 year bottom and production of sugar has peaked last year with bad harvesting season as predicted farm / agriculture output across the world will drop pushing agro commodity prices higher. So imagine a decontrol + 100-300 percent upside in raw sugar prices over next three years. Renuka with its current diversification will become one of the top companies for sugar (astro is indicating worst is getting over for Renuka Sugar) possibly if I get time I will update more details on sugar cycle over the weekend.

My older clients will remember what I had predicted about Orissa Sponge in 2006 end. I told not once multiple times “Ghar beche ke mall lelo” Prices that time were at 25 Rs after one year Nifty double and Orissa Sponge reached 45 most of the investors booked out and went to quality names but I kept telling investors hold this will blast the day it does you will remember me. After that what happened is known to most investors Orissa Sponge started hitting upper circuit first circuit opened at 105, then upper circuit opened at 250 then upper circuit opened at 450 then upper circuit opened at 620 then upper circuit opened at 720. Rs 25 made a high of 720 Rs . All this took 2 years time to happen. By 2019 I am expecting similar up move in sugar stocks. Buy and accumulate on dips.

Good Trading To You!