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SGX Nifty 5th Oct 2016
SGX Nifty / Nifty Futures today continued its pullback and closed in the green marginally. As per our overall analysis we could not understand what the MPC was trying to communicate.
As per our understanding inflation will remain high (the absolute numbers may come in a bit flattish due to higher base effects in the corresponding period of last year) but net inflation will not come down as per our understanding in fact there are many parts to this and we expect inflation to still move higher which will be lead by both agricultural commodities and also crude oil prices which we also see that now is not headed below 38 and on the higher side will move towards 60$/bbl.
Nifty Futures as per our analysis we do not see sustaining higher but volatility will be there please keep that in mind and both sides sharp price movement will be seen as per our understanding. US markets as of now are trading a bit negative and we are still waiting for confirmation that we were seeking on Monday so will update more later or possibly tomorrow. If you are trading only on the basis of this post please use appropriate risk management and trade. In the near term we could see both sides price fluctuations and some sharp declines and sharp pullbacks both will take place.
We remain very bullish on sugar space and on any sharp declines we continue to recommend buying ugar sugar and renuka sugar both these stocks will do very well in the coming time. Sugar prices are expected to firm up locally ahead of the festive season and we expect good results for ugar sugar and renuka sugar. There could be some positive news developments for renuka sugar in the coming few days traders do keep a watch on it. Crude oil futures we remain very bullish but keep in mind that it is also possible to see 43-41$/bbl so on sharp panics traders can accumulate crude oil futures. In the near term we see a resistance between 49-52$/bbl.
Good Trading To You!