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SGX Nifty 6th April 2016
SGX Nifty / Nifty Futures today once again confirmed what Nifty Charts have been indicating and based on our Nifty Chart readings we have been saying that we do not see SGX Nifty / Nifty Futures sustaining on the higher side and from a tactical stand point it will be better not to be in buying positions and on rise we could even short sell Nifty Futures. As per our Nifty Prediction / Nifty Futures tips we were selling Nifty Futures on rise and now our average for our shorts post trading is at 7850 approximately (April Futures levels) We still do not see that the down move or rather the corrective cycle has ended and it could still play out for a few more days so on any rise we will keep adding short selling positions from a tactical stand point. Please keep in mind once we see that the correction of 6825 to recent highs is done we will once again get into buying positions for higher side targets and we are not bearish and that we are only playing the pullback rally nothing else although it may appear that this is a fresh mandi cycle that has started but we do not feel so as per our broader elliot wave or gann wave counts and looking at the broader astro cycle and time cycles combined the message is that current move is nothing but a corrective of 6825 to the recent highs. We also mentioned and had cautioned that Rahu (North Node) has been controlling this move and Rahu (North Node) is a master of deception he has now once again forced people into long trades and now everyone is talking about a general stop loss of around 7400-7550 so we expect that at least that area will be tested or may be even breached in the near term with volatility hence keep in mind that trying to catch the bottom is not advisable for now and waiting on sidelines or selling on rise will make much more sense for now. (when to buy where to buy how much to buy all details have been given to our clients if you are trading only on the basis of this post then please use appropriate risk management systems and trade)
Today Reserve Bank of India announced its credit policy and as we had mentioned yesterday we were expecting 0.25 bps rate cut and not 0.50 as what was being floated or was being expected by the Indian Stock Market participants. We also had predicted that we could see the liquidity measures being taken care by some sort of OMO’s and CRR cut what the Reserve bank of India has done has been in line with what we were expecting and in the next two or three months this move will help Banks pass on reduced lending rates to their clients and this is a great step in the on going “Balance sheet repair” for the Indian Banking system. We do not see the current moves immediately effecting or increasing the credit off take but in time with Banks passing on 0.25 bps we should see minor improvement in credit growth.
Nifty spot support and resistance for tomorrow is at 7570 and 7720. Use dips to buy and hold MSL, Kesoram, NMDC, Bajaj Hind, Renuka Sugar, EID Parry, Tata Coffee.
Good Trading To You!