SGX Nifty 29th April 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 29th April 2016

SGX Nifty / Nifty Futures today confirmed our view and started falling after making a high of 7991.  As per our Nifty Futures Tips / Nifty Prediction we reiterate that these are not prices to buy rather these are prices to exit longs from portfolio and even short sell Nifty Futures.  As per our Nifty View the up move that started on 29th Feb 2016 from 6825 is more or less done and now we expect Nifty Futures to move significantly lower from here on. Please keep in mind the down side targets for this move are decent and the fall can be seen in a sharp manner and hence kindly avoid a buy on dips strategy further if you are more of a investor then be on as much cash as possible since we will get much better prices to buy around the lower side.  Yesterday we did mention that Bank Nifty has resistance around 17100 (Bank Nifty spot levels mentioned) and that must be avoided. As for our clients are concerned we did mention that short positions can be taken in Bank Nifty and that trade too is doing very well.

Yesterday we were making the point about trailing PE, most people follow forward PE system and in our historical studies we have not seen that as a effective system to predict cheap and expensive markets. As of yesterday the trialing PE was almost at 22 and in our historical back testing no one has ever made money buying at such expensive valuation and as per W D Gann. Future is nothing but a repetition of the past hence if in the past people did not make money buying expensive then now too they will never make money.

Nifty Share Price / Nifty Chart has today confirmed a primary trend reversal and further if we look at the overall speed of the downside move then it was faster than the previous wave and Nifty move today is also confirming reversal from a wave perspective that a fresh down move has begun.  From a astro cycle perspective today was poorvashada nakshatra (please note we are using a combination of both Vedic and Western Astrology. W R T Mercury Retrograde we have considered western astrology, while nakshatra analysis is based on some Vedic astrology systems)  and that along with Mercury Starting retrograde motion in Taurus will start a reversal in Banking sector and also start many false rumors in the Indian Stock Markets. The net effect of this will be that as mentioned yesterday will be false breakouts like the one that was seen on 26th April 2016. 3.30 PM on 26th April 2016 most of the Indian stock market participants were all talking about higher side targets of 8150-8400 and we were consistently saying that “More or less this area is the top” Anyways as I keep saying I will keep guiding and writing as per what I see. If someone wants follow can follow.  Due to today’s astro cycle one must keep in mind that the recent leniency shown by Reserve Bank of India with respect to NPA’s could be withdrawn which in simple words means if the loan goes bad please report it and do not hide it under the table. 

Since Mercury is now retrograde Nifty Chart will keep making lower tops and lower bottoms but keep in mind that there will be counter trend moves every few trading days and hence to maximize profits from this current down move it will be prudent to keep taking money off teh table or simply keep booking profits at regular intervals and then again sell on rise. This current move is not a just sell and hold move.

Nifty spot resistance and support for tomorrow is at 7992 and 7710. Use dips to buy and hold Bajaj Hindustan, Eid Parry, Renuka Sugar (our new multi bagger as told to clients) MSL and Tata Coffee. When to reenter Kesoram and NMDC we will update later.

Good Trading To You!