SGX Nifty 4th Dec 2015
SGX Nifty / Nifty Futures Minor Trend is up / bullish. SGX Nifty Major Trend is up / bullish. We have been saying from 7800- that SGX Nifty / Nifty Futures we do not see sustaining on lower side and we maintain our view. As per our Indian Stock Market Analysis we do not see any significant downside and the current structure that is being formed is suggesting that risk reward ratio will favor buying on dips. (The real impact of what we are writing today will be understood by most readers 50-80 days from now that’s in Feb 2nd week you will understand what I have been saying) We do not see Nifty sustaining below 7700 or may be even below 7800 so look at it from any angle take Gann Wave Calculations or Elliot wave calculations add time cycle analysis and astro cycle analysis to it and become more and more clear that Nifty will not sustain on the downside and start zooming anytime after this ongoing correction ends. Does that mean that in the short term we will not go below 7700? No I am not suggesting that for a minute, going below 7700 is possible but we don’t see Nifty sustaining below 7700 so please read carefully and understand I am not predicting a bottom at 7700 or 7800 having said that buying on lower side will make superb money if you hold over the next few days. So for traders from a tactical stand point downsides are restricted to at best 200-300 points from here (including a intraday panic, if any) while Share Market News flow over the next few days will be in favor of risk on assets, so today European Central Bankers will talk of more easing and pumping more liquidity into the system. While on 15th Dec FED will not increase interest rates and Indian Parliament will eventually end up passing the GST bill since the cap of 18 percent has been approved by North Block as per our sources. So all this Share Market News flow will eventually create a bullish move based on sentiment for the next few trading days. So am I suggesting that the bear market is over and India is on path to recovery? No I am not. This will just be a bullish phase within a bear and that is the end of it. I do not see India recovering beyond a point and with the announcement of Q3FY6 results valuations will look more rich. We see Inflation picking up from March 2016 for India especially food inflation will start hurting India’s growth.
For pure risk management / trading strategy we have communicated to our clients what is to be done and how trading positions have to be managed or what is to be done. (if you are only trading on the basis of this post then please trade with extreme caution as Nifty is nearing a crucial juncture and if you don’t have appropriate risk management you could get stuck into some odd positions which could become difficult to come out of)
Nifty spot resistance and support for tomorrow 4th Dec 2015 is at 7715 and 7930 . When to add/buy where to add/buy all details will be updated live to clients. In this next 12 months we will touch 8800-9000 also and that as per our analysis is one of most important trading rallies we need to catch or even invest into right set of stocks for the short term from the lower side.
Good Trading To You!