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SGX Nifty 23rd Aug 2016
PLEASE NOTE THAT THIS IS MY OVERALL VIEW ON THE NIFTY AND THAT DOES NOT MEAN PRECISE ENTRY AND EXIT POINTS WILL BE MENTIONED IN THIS POST. IF YOU ARE TRADING ONLY ON THE BASIS OF THIS POST PLEASE USE APPROPRIATE RISK MANAGEMENT AND THEN ONLY TRADE. PLEASE DO NOT OVER TRADE.
SGX Nifty / Nifty Futures today continued its consolidation with in a small trading range that has been formed for the past few days. The divergences which we see are forming on the charts suggest that this range is about to breakout but in whatever direction it breaks out is not important as that initial direction will be a false breakout so please keep that in mind. The range will just break and then again another range could be formed and then we see the sharp downside starting. As per our Nifty Futures tips given to our clients we continue to keep trading and pulling our overall cost higher as and when possible. We did take some Nifty 8500 Call shorts and we did book out of them today so such trading we keep doing from time to time. From a positional stand point we are very clear that the bear market that started on 4th March 2015 is not yet completed and we will see much lower levels from here. As of now most of the market participants do not expect even 7500 to break but we see prices much lower than 7500 infact the levels what we are seeing are not being imagined by most of the market participants as of now atleast. We have multiple data points to clearly understand that current move is a part of a corrective wave going on and we do not see this current move as a impulse wave. This is not a tezi cycle it is just a “Bina kaaraan tezi” or a massive pullback that we were expecting to come from around levels of 7000 levels and that is the reason we had very clearly mentioned that this will be a trade in and out rally and by no means this is the start of a tezi or a bullish cycle as being seen by many. At such hefty valuations and charts which show a extremely dangerous picture of the coming time we do not recommended holding any longs.
Sugar Stocks will continue doing well and we see great opportunity in them even from this price. As we said last time that we will be doing some tactical trading in our sugar stocks and besides sugar Tata coffee and MSL will also do very well. Some important news flow is likely in MSL in the coming days so do keep that counter on radar.
Good Trading To You!