SGX Nifty 24th 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 24th May 2016

SGX Nifty / Nifty Futures today was seen lower by 18 points and did give a pullback towards 7805 during the day but as we have been saying that the pullbacks that come will not last and after making a high of 7805 Nifty once again started falling from higher side and then made a low of 7722 (Spot Nifty levels mentioned).

Nifty Share Price / Nifty Charts do not show any strength and we expect Nifty to remain a sell on rise but at appropriate points. Please note sell on rise does not mean sell anywhere and anyhow. (Our clients are being told live during market hours when and where to buy or sell. If you are trading only on the basis of this post then please use appropriate risk management and trade). 

Nifty Futures Tips / Nifty Prediction given to our clients remains the same. Our overall Nifty View remains the same that from now on selling or rather short selling Nifty Futures on pullbacks will make good money. We do not see Nifty Futures making much or rather any money by adopting a buy on dips strategy. As per our analysis we see only selling on rise making money. Please keep in mind that our view is valid for the next 2-3 months. We are not predicting down trend only for the next few days but this down move will last for the next few months. Does that mean that pullbacks will not come? No, pullbacks will keep coming from time to time and the idea is to sell on rise whenever those pullbacks come. Lets take a e.g. so that most of you can understand a bit more clearly what we are trying to convey.  Indian monsoon forecast update will show that the monsoon is progressing well and that most of them will maintain that India is going to have a above average monsoon. This news trigger could possible act as a positive news and spur the Nifty forward but please keep in mind when such pullback does come though it will look like a new bullish cycle has started in reality it will either show false breakout and trap long traders or may just make a lower top and come crashing down from there.  The similar point goes with the GST bill being passed and when such a news does come (I mean any positive news which will be like GST or some major bills being passed in parliament at that juncture the mood will once again become positive and there will be a sentiment reaction in Nifty Futures and the net result of that will be a pullback but once again we are warning these pullbacks will look very tempting to get into bullish trades (thanks to Rahu (North node) playing a deception role who is actually controlling the rally till now but it will only end up as a false breakout or lower top) Hence the ideal way to trade this move as per our analysis will be to sell on rise as we have been advising and then trade in and out till a sharp fast fall does not begin. The past few trading days Nifty has been in a range bound trading move and we are expecting from 29th May 2016 some trending activity does begin. It may also happen a few trading days in advance.

On dips buy and hold Ugar Sugar, Renuka sugar, Eid parry, Bajaj Hindustan, tata coffee, Msl.  All these stocks will do very well in the coming time.  Nifty support and resistance for tomorrow is at 7670 and 7815 (Nifty 50 spot levels mentioned).  On rise reduce longs if any.

Good Trading To You!

Chat Transcript given today

[08:57, 23/5/2016] +91 90040 79145: Gm
[08:57, 23/5/2016] +91 90040 79145: Positional Trade Update Nifty June 7600 Call Hold 1 Part Shorts & Nifty May Futures Hold 1 Part Short. Hold Positions as told till next update
[09:28, 23/5/2016] +91 90040 79145: wait for msg to sell more
[11:33, 23/5/2016] +91 90040 79145: Positional Trade Update Nifty June 7600 Call Hold 1 Part Shorts & Nifty May Futures Hold 1 Part Short. Hold Positions as told till next update
[11:33, 23/5/2016] +91 90040 79145: if anything needs to be done i will update
[12:56, 23/5/2016] +91 90040 79145: Positional Trade Update Nifty June 7600 Call Hold 1 Part Shorts & Nifty May Futures Hold 1 Part Short. Hold Positions as told till next update
[12:56, 23/5/2016] +91 90040 79145: Hold positions as told
[13:58, 23/5/2016] +91 90040 79145: wait for msg to sell more
[13:58, 23/5/2016] +91 90040 79145: please be patient and wait
[13:59, 23/5/2016] +91 90040 79145: Overall Nifty is in a sideways move with a downward bias
[14:02, 23/5/2016] +91 90040 79145: will update when and where to sell more
[14:02, 23/5/2016] +91 90040 79145: as of now just wait and be on sidelines
[14:02, 23/5/2016] +91 90040 79145: trade is to sell on pullbacks
[14:03, 23/5/2016] +91 90040 79145: let proper pullbacks come for selling positional or stbt again
[14:03, 23/5/2016] +91 90040 79145: volumes very low. This is not a good trading set up
[14:57, 23/5/2016] +91 90040 79145: Continue holding positions as told.  If anything has to be done I will update.
[14:57, 23/5/2016] +91 90040 79145: Use all dips to accumulate Msl, Bajaj Hind, Renuka, Ugar
[14:58, 23/5/2016] +91 90040 79145: Positional Trade Update Nifty June 7600 Call Hold 1 Part Shorts & Nifty May Futures Hold 1 Part Short. Hold Positions as told till next update
[14:58, 23/5/2016] +91 90040 79145: Low volume trading on for now
[14:58, 23/5/2016] +91 90040 79145: nothing much to be done
[15:25, 23/5/2016] +91 90040 79145: Positional Trade Update Nifty May Fut Book Profits in 1 Part Shorts & Continue Holding Nifty June 7600 Call 1 Part Shorts. Since Nifty has a slow fall on pullbacks we will short sell calls as they will end up being more profitable. At this juncture it does not make much sense to hold on to Futures short positions
[15:25, 23/5/2016] +91 90040 79145: Confirmation Nifty May Fut 1 Part Booked
[15:26, 23/5/2016] +91 90040 79145: Positional Trade Update Nifty June 7600 Call Hold 1 Part Short
[15:26, 23/5/2016] +91 90040 79145: Those holding positions in dabba please continue to hold 1 part Nifty Fut short
[15:26, 23/5/2016] +91 90040 79145: Positional Trade Update Nifty June 7600 Call Hold 1 Part Short
[15:26, 23/5/2016] +91 90040 79145: Total only 1 part short open now
[15:27, 23/5/2016] +91 90040 79145: On bounce we will sell again in calls mostly
[15:27, 23/5/2016] +91 90040 79145: only 1 part is open in shorts now
[15:28, 23/5/2016] +91 90040 79145: Positional Trade Update Nifty June 7600 Call Hold 1 Part Short
[15:29, 23/5/2016] +91 90040 79145: overall trend remains down but since its a slow move down with lack of volumes we will get pullbacks at that point in time we will sell again