SGX Nifty 8th Jan 2016
SGX Nifty / Nifty Futures today plunged 172 points to finally close the day at 7568. Readers of this website are well aware that since past few trading days or rather since last week we have been clearly guiding to avoid fresh longs at higher levels and we have been recommending to wait for panic bottom formation around 7500 spot Nifty. We also did mention that if possible do sell calls as that will be one of the safest trades. Today we have covered our short positions and now we will be looking to buy and build long positions on dips towards 7500 for positional targets of 8800-9000. (I know no one is predicting such a move in Indian Stock markets) but we are very clear looking at the overall charts and time cycles and using other techniques. It must be understood that buying around 7500 is not a intraday or a BTST trade it is a positional trade and buying around 7500 does not mean Nifty will not breach 7500 it very well could. I am not suggesting for one minute that 7500 will be exact bottom all I am saying is buying around 7500 will make huge money from a positional stand point over the next 90-180 days.
SGX Nifty Minor Trend is down / bearish. SGX Nifty Major Trend is bullish / up. On dips buy and hold positional trading long positions in panic towards 7500. Please understand that we are not expecting 7500 to necessarily hold, during panic bottom formation Nifty could very easily and swiftly go below 7500 and even could go lower from there hence proper position sizing needs to be done in order to maximize returns. (if you are trading only on the basis of this post then please use appropriate risk management systems and then only trade during panic bottom formation anything is possible so please be careful and trade with proper position sizing)
Nifty support and resistance for tomorrow is at 7488 and 7726. Use all dips towards 7500 in panic to buy and create positional trading longs for targets of 8800-9000. Please understand buying around 7500 as per our Indian Stock Market analysis / Nifty Prediction will be the best trade in this year on the long side. So use the panic to buy and hold, do not listen to people who talk of 7200-6800 (and I do know many traders and investors and even fund managers who are shell shocked and now totally bearish) but we do not see that happening now we see one of the most amazing astro cycles and time cycles which will take Nifty towards 8800-9000. Many Traders and investors have asked me what share market news will take it to 8800-9000 and the answer is I franky do not know, Charts always show the forward trend well in advance and charts are very clearly indicating that Nifty after a panic bottom will zoom to 8800-9000. Share market news will always be a trailing indicator and it is not worth following news for trading.
Today as per astro cycles there are two very important geocosmic signatures both are level 1 signatures as per our historical studies. Jupiter Retrograde and Sun square Uranus both these geocosmic signatures have over 89 percent correlation to primary market cycle lows with a orbit of influence of 7/8 trading days so since we are near 7500 (although we could still breach that and go a bit more lower than 7500 for a few trading days but overall a panic bottom will be formed as per our Nifty analysis and Nifty Prediction)
Good Trading To You!