SGX Nifty 4th March 2016

SGX Nifty

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SGX Nifty Live

LTP  8,576.00   -128.00   -1.49% High 8,710.00 Low 8,546.50

SGX Nifty 4th March 2016

SGX Nifty / Nifty Futures once again opened higher today on good global cues and in line with our prediction. Nifty now has zoomed higher by 659 points from the low of 6825 made on Monday 29th Feb 2016. The sheer speed and volumes in this rally have a lot to say. Let us revisit the sentiment indicator first today. As of right now most traders are still in denial that SGX Nifty / Nifty Futures has given a breakout (faster retracement above last wave top of 7252 was crossed in less than 33.33 percent of the time  time with 3 times higher average volumes) and that Nifty is now heading higher on the contrary to accepting the bullish cycle move most of the traders are saying that nothing has changed fundamentally or rather in some cases justifying and calling a top for this market anywhere between 7500-7600 when the trend is so strong we do not thing that is a prudent way to think rather the best way would be to just ride the trend and hold on to longs positions. If we purely look at the charts, each and everyday the charts are getting stronger (on each and every time frame from 5 min- weekly) and just communicating one message buy every dip. For e.g. as per rule previous tops become supports, now yesterdays top was a consolidation top Nifty just touched the high point made yesterday and then started zooming again. If we look at the charts in any of the time frames all of them are just communicating one message that Nifty is headed higher, Janta is now totally trapped in shorts and no one has any long exposure this is perfect recipe for panic buying which we feel could come next week if some parameters are completed so we need to be vigilant as to what the markets are saying. Please understand our view carefully we are not suggesting for one minute that a dip is not possible, sure a dip is possible and at some juncture we will see a minor dip but that dip should be used to buy and not to sell. We have been time and again saying that until and unless the shorts are washed out next round of mandi will not start as of right now people are so relaxed in shorts and justifying their positions. What many have missed out is that price volume action is suggesting that this will continue for sometime as the price and volume activity indicates smart money is buying aggressively which in other words means that they know something that is not yet in public domain. 

On dips as we have been saying buy MSL, Kesoram, Renuka, Bajaj Hind, EID Parry, NMDC as we see a very good bullish cycle in these stocks. Sugar stocks buy aggressively and hold.

Today I do not think writing any support and resistance makes any sense, if you get any dips keep buying. Reiterate targets 8800-9000.  SGX Nifty / Nifty Futures Minor Trend is up / bullish. SGX Nifty / Nifty Futures Major Trend is up / bullish.

Good Trading To You!