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SGX Nifty 2nd Feb 2016
SGX Nifty / Nifty Futures opened higher today on positive global cues but then started a steady slide and made a low of 7541 during intraday trade. SGX Nifty / Nifty Futures Minor Trend is down / bearish. SGX Nifty / Nifty Futures Major Trend is bullish / up. As per our Indian Stock Market analysis / Nifty Prediction we do not see any significant upsides from here immediately and we see a high possibility of a dip towards 7300 or even intraday breach of 7241 spot Nifty (low made on 21st Jan 2016) during that panic / drift towards lower side positional trading longs must be bought and held for targets of 8800-9000. So in a nut shell from here a last dip towards 7300 area and then a powerful bullish cycle should begin. Tomorrow 2nd Feb 2016 Reserve Bank of India will announce its bimonthly credit policy and we do not see any change in policy as inflation has been rising for 5 months in a row and further there are still issues on the fiscal deficit front so under these circumstances we do not see how Reserve Bank of India / Rajan will get space for a 0.25 bps rate cut. Since the street is generally expecting a rate cut on 2nd Feb 2016 we could see sharp sell off post the policy as by the time policy is announced we would have begun scorpio moon (which is known to create massive volatility) and in addition to that Rahu (North node) has just changed house so we could see some real deceptive moves. As per our analysis traders are already trapped on the long side and we see a sharp panic move to come anytime in the next 2-3 trading days. Extreme caution is advised for long traders on higher side. Buy in panic during the next three days and then hold those positions is the advise. Do not buy on higher side for now at least we see a dip is coming. Todays China PMI numbers have also disappointed and that is also going to keep the upside capped in the near term.
Post the panic bottom in this week we see a good bullish move upside and all trades must be on the long side only after this week or around the end of this week onwards for longer term targets of 8800-9000. One of the safest trades would be to sell March puts having value above 350-450 this will give traders good money from a short and medium term perspective. If you are not our client and only trading on the basis of this post please trade with proper risk management system and trade.
Nifty spot support and resistance for tomorrow 2nd Feb 2016 is at 7390 and 7625 Nifty spot rates mentioned.
Good Trading To You!