SGX Nifty 6th May 2016

SGX Nifty

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

SGX Nifty

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SGX Nifty 6th May 2016

SGX Nifty / Nifty Futures today opened flat and during the day gave a pullback towards 7770 Nifty spot levels mentioned and as we have been saying made another lower top in the process, most people suddenly again started talking about 7900-8000 levels and once again most of those traders got trapped in intraday long positions and btst long positions, actually those who were buying today were already trapped two days back around 7900 levels and were actually averaging their long positions but in reality they have only added to their wrong trade or rather trade against the main trend . If we take a look at the Nifty Chart we can now see Nifty Futures has been making consistent lower tops and lower bottoms (I know most people will only accept a lower bottom is in place once 7500 spot Nifty is taken out) and the pullbacks are loosing momentum and speed which is a very clear sign that now trend is on the lower side.  Generally but not as a rule during pullbacks volumes will contract and speed relative to the main trend will be less and if we closely observe the message that Nifty Share Price / Nifty Charts are giving us then we will have to conclude that a fresh down move has started a few trading days back.

As per Nifty Futures Tips / Nifty Prediction given to our clients our Nifty View remains the same. Use any rise to exit trapped trading longs or Investment long positions. For investors they must be on as much cash as possible better still move money to fixed income at least for the time being and for traders it is much more better to short sell Nifty Futures or sell Nifty Calls but on pullbacks or rise. Thanks to principles of financial astrology we know that Mercury Retrograde motion in Taurus will create pullbacks every few trading days and as mentioned before also Mercury will act like the younger brother of Rahu and trap people in deception of bullish move but in a shorter time frame. In reality it is as dangerous as Rahu (North Node) deception because the moves take place fast and trap traders and before the trader understand that he has done a wrong trade he is trapped and then the mind games of hope begin. What hope let it come a few point higher then I will exit kind of hope and in that he gets further into losses.

For investors here is another point to keep in mind. The valuations as of now are not cheap (We do see various fund managers from various invesment houses coming and saying buy buy buy. The point is have they every told you to book profit or wait for dip to buy? at least I do not remember a point in time when these fund managers from various asset management companies told you to wait for sometime)and we will tell you when the cycle bottom does come and stocks are cheap (as per our historical parameters which comprises of many indicators both fundamental and technical). For now on dips investors can buy MSL, Bajaj Hindustan, Eid Parry, Renuka Sugar and Tata Coffee.  Please wait for our reentry message into Kesoram and NMDC.  If time permits we will come out with few more multi baggers (heavy research is on for them)

Nifty spot support and Resistance for tomorrow is at 7510 and 7790. Use rise to exit trapped long positions. Reiterate we will not be surprised to see Nifty around 7550 shortly.  SGX Nifty / Nifty Futures Minor Trend is down / bearish. SGX Nifty / Nifty Futures major trend is also down / bearish.  Wait for appropriate time to build portfolio. Todays trading chat transcript is enclosed below.

[09:08, 5/5/2016] +91 90040 79145: Gm
[09:08, 5/5/2016] +91 90040 79145: Positional Trade Update  Nifty May 7500 Call Hold 1 Part Short, Nifty May 7600 Call Hold 2 Parts Shorts & Nifty May Fut Hold 1 Part Short Till Next Update
[10:38, 5/5/2016] +91 90040 79145: STBT Trade Nifty May Fut Sell @ CMP
[10:38, 5/5/2016] +91 90040 79145: Confirmation STBT Trade Active
[10:38, 5/5/2016] +91 90040 79145: Positional Trade Update  Nifty May 7500 Call Hold 1 Part Short, Nifty May 7600 Call Hold 2 Parts Shorts & Nifty May Fut Hold 1 Part Short Till Next Update
[10:38, 5/5/2016] +91 90040 79145: Nifty Chart / Nifty Share price indicating fast fall can start anytime
[10:39, 5/5/2016] +91 90040 79145: now hold positions as told and wait for further msg
[10:40, 5/5/2016] +91 90040 79145: Usdinr Hold 1 Part long as told
[10:40, 5/5/2016] +91 90040 79145: Use dips to accumulate Renuka sugar, Eid Parry, Bajaj Hindustan, MSL, Tata Coffee
[10:41, 5/5/2016] +91 90040 79145: when to reenter kesoram and NMDC will update
[10:42, 5/5/2016] +91 90040 79145: By Monday / Tuesday we could see levels of 7500-7550 spot Nifty. Please do not over trade
[10:47, 5/5/2016] +91 90040 79145: Reiterate Buy Ugar sugar on dips
[10:48, 5/5/2016] +91 90040 79145: use dips to accumulate ugar sugar also
[11:43, 5/5/2016] +91 90040 79145: Hold position s as told
[11:53, 5/5/2016] +91 90040 79145: Hold position s as told
[12:40, 5/5/2016] +91 90040 79145: Bank Nifty hold remaining 50 percent qty as told
[14:05, 5/5/2016] +91 90040 79145: Hold positions as told
[14:17, 5/5/2016] +91 90040 79145: Yesterday we had predicted that minor pullback will be seen from the low point of the day and that is more or less done
[14:17, 5/5/2016] +91 90040 79145: Hold short positions as told
[14:18, 5/5/2016] +91 90040 79145: reiterate that we see 7550-7500 shortly
[14:18, 5/5/2016] +91 90040 79145: spot Nifty levels
[14:18, 5/5/2016] +91 90040 79145: please strictly follow msg and trade do not over trade please
[15:17, 5/5/2016] +91 90040 79145: Hold positions as told
[15:18, 5/5/2016] +91 90040 79145: Nifty chart is indicating another lower top has been done and now fast move on the downside can resume anytime.
[15:18, 5/5/2016] +91 90040 79145: Positional Trade Update  Nifty May 7500 Call Hold 1 Part Short, Nifty May 7600 Call Hold 2 Parts Shorts & Nifty May Fut Hold 1 Part Short Till Next Update
[15:18, 5/5/2016] +91 90040 79145: Hold positions as told
[15:18, 5/5/2016] +91 90040 79145: when and where to add more shorts will update
[15:18, 5/5/2016] +91 90040 79145: do not thing of covering shorts
[15:18, 5/5/2016] +91 90040 79145: for now at least

Good Trading To You!