SGX Nifty 24th Oct 2016

SGX Nifty

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SGX Nifty 24th Oct 2016

SGX Nifty / Nifty Futures continued its consolidation along expected lines and as per our understanding of the current wave and astro cycle we see that this consolidation is about to end shortly and post that a volatile move with a downward bias will resume. It is important to keep in mind that the overall down move target is 5872 and we know that no one in the market is predicting this for now, many people will predict or pretend to predict later on but for now everyone will talk about 10500 and 12500 but we do not see that taking place now.

Sure we will even see 22800 on Nifty but still there is lot of time for that as of now the move will remain on the downside and making money will be restricted to short selling positions.

From a investors perspective investors should always look for value and we do not see much value in the overall markets. Most stocks are richly valued at current levels and we do not see any investor making any money over the next one year by buying stocks at such hefty valuations and we say this because future is nothing but a repeat of the past and there is nothing new under the sun so if in the past no one has made money in the markets by investing at such hefty valuations we do not see how those investors who buy at current valuations will ever make money.

The only exception to that rule is investing in some company who will get some path breaking new technology that will change the daily routine of the general public and we have not seen any company doing such kind of innovation at least for now so coming back to the point we do not see any investor making any money by doing any kind of investment at current prices in the broader market over the next 12 months perspective. Maharashtra Scooters Ltd has done very well from our recommended price of 1100 and we continue holding the stock.
Ugar Sugar and Renuka Sugar also will do very well in the coming time. So we recommend to accumulate them on dips.

Silver will do very well in the coming time and we remain bullish on it. On panic we will be buying and yes in that panic we could see some lower levels so when to buy where to buy how much to buy etc all details to our clients.

Overall as far as the Nifty goes in the near term we expect choppy moves to begin and once again we reiterate that prices will keep moving in a choppy manner and no single direction trend will be seen. Sharp zig zag moves will be taking place and we do not see upsides sustaining but neither we see a one sided fall in the near term.  There are lot of people who believe that near term bottom is done at 8506 area but we do not feel so as the major parameters that we track are not showing the same.

Good Trading To You!

22 thoughts on “SGX Nifty 24th Oct 2016

  1. Dear Glen,

    I do read your views regarding market predictions. Its good learning for a newcomer. However my personal experience tells me even if you do a SIP you can earn provided one should have guts to continue the SIP investment even if markets are down 50% & be with the markets in it’s downturn which needs lot of patience & courage ( “when you are with Markets in it’s bad time be assured Markets will be with you in it’s good Time”)
    As far as market collapse is concern no one on this earth knows the date when it will happen. But yes global economical conditions suggests markets are very overvalued as lot of negative events like , China slowdown , Brexit , Deutsche Bank Collapse etc.. happened still markets are keep going. This market needs one trigger ( bad news ) may be winning of D. Trump or Russia/US war or xyz & it can change the things for the market

    Just thought of sharing my views.
    Beast of luck to you & your team.


  2. Sir, actually we saw Nifty rallying from 8500-8700 in three days but in the same time Dow has actually underperformed, hardly any upside. Now Dow is looking under pressure. So if global markets fall this time in tandom, Nifty might over perform I.e fall more faster and steeper. Best luck, I am expecting action starting in next 2 days itself, what say?


  3. Sir, dolllar index has any co relations with stock crash. I think its faster move suggest something big going to happen in the market very soon . Your comments

  4. I hold a put of 8600 on the index for this September series and I seriously think there is a big down side to the index in the coming week.Its a risk I took with 8600 do you suggest to hold or is it better to exit considering its very near to expiry.??
    Would be very thankful for the reply…..

  5. mallavv sir would u suggest to buy dec 8000 put in 2 parts, first now and second 20-30% lower, looking that currently the vix is low and there is chance to spurt in vix.
    can we expect 7500 in nifty by dec?

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