SGX Nifty 5th Jan 2016
It was blood bath today. Nifty ended the day below 7800 at 7791 down 171 points. Yesterday in our daily update we had very clearly indicated that Nifty will end its current pullback between 7950-8100 then begin a fast fall towards 7500. We have been clearly predicting that bottom is not yet in place and we expect this current fall to go towards 7500 and may be even breach 7500 during intraday trade or may be for a few trading days. As per our Indian Stock Market Analysis / Nifty Prediction we once again reiterate that we are expecting a panic bottom around 7500 spot Nifty but during that panic bottom formation buying / accumulation of longs must be the strategy. From a short term perspective we could look to short sell Nifty Futures or sell calls if we do get small stop loss points or low risk entry points as we do not see Nifty Futurs moving significantly higher immediately but from a medium term perspective we must be buying Nifty futures and selling puts as post the panic around 7500 we see Nifty starting a bullish cycle and heading towards 8800-9000. As per our Nifty Prediction / Indian Stock Market analysis this will be the best time in coming time to make good money in long trades. Hence please understand our view correctly and follow. (If you are trading only on the basis of this post then please use appropriate risk management systems and trade, trade light and avoid heavy trading positions for now, Mercury retro will keep changing Indian Stock Market direction very sharply and suddenly every 1-4 trading days)
SGX Nifty Minor Trend is down. SGX Nifty Major Trend is up / bullish. On dips in panic towards 7500 buying must be done from a positional stand point. Please note I am not predicting that Nifty will make exact bottom at 7500 we could even breach it as during the panic we could even go below 7500 so please use appropriate position sizing to capitalize on the move. All I am saying from a positional stand point buying around 7500 spot Nifty in panic will make excellent money from a positional stand point by which I mean over the next 90 odd trading days. Hence a buy on dip approach must be followed around 7500 and adequate margins must be kept in place to support if breach of 7500 happens for a few trading days. We do not see price sustaining below 7500 but still from a safety perspective adequate margins must be in place.
Nifty support and resistance for tomorrow is at 7714 and 7878. For the next few trading days use rise to sell and cover intraday or in 2-4 trading days and on dips in panic start accumulating long positions from 8800-9000 or start selling far month puts.
Good Trading To You!