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SGX Nifty 8th June 2016
PLEASE NOTE THAT THIS IS MY OVERALL VIEW ON THE NIFTY AND THAT DOES NOT MEAN PRECISE ENTRY AND EXIT POINTS WILL BE MENTIONED IN THIS POST. IF YOU ARE TRADING ONLY ON THE BASIS OF THIS POST PLEASE USE APPROPRIATE RISK MANAGEMENT AND THEN ONLY TRADE.
SGX Nifty / Nifty Futures today rallied post the Reserve Bank of India meeting and made a high of 8292 spot Nifty levels. Yesterday we had clearly mentioned that we do not see any rate cut and we had mentioned that there will be a word of caution and that is exactly what Reserve Bank of India has delivered post the RBI policy Nifty rallied on good European cues. As per our analysis our overall Nifty view remains the same and as per Nifty Futures Tips / Nifty Prediction we do not see Nifty sustaining any higher now and the rise that has come is done the rally that started at 6825 on 29th Feb 2016 is done as per our analysis. Initially we were expecting this rally to end around 8090 but it did surprise us on the upside even though we have been surprised on the way up it really does not matter as the trend is in mature stage (In the event tezi cycle has to play out even in that case a corrective wave has to come before resuming the bullish cycle, if it has to bullish cycle happen). The broader markets is showing great deal of divergences on multiple counts and since there are so many indicators which are showing us the top we do not see Nifty closing high now onwards and we see a sharp fall starting anytime. (please note I have been wrong for the past 200 points so please take our advice with a pinch oh salt. I am not God to go right 100% all the time. I am writing my overall view here and if you are trading only on the basis of this post please manage your risk and trade. If you make money good and if you loose money you take the responsibility. I am responsible for my clients only not every person reading this post and then trading on their own wishes) I have a responsibility towards my clients and I can not take responsibility for people who trade without risk management only on the basis of this post.
As mentioned yesterday there have been two major astro signals indicating a cycle top and those astro signature are creating a top and once this top is in place we should start the down move. Valuations today have reached the same levels as that of 4th March 2015 and in our historical back testing no one ever has made money in the Indian stock markets by investing at such high valuations. The reasons follow but whenever the valuations have come to such levels Nifty has always crashed and corrected from such steep valuations. History will repeat itself yet again and Nifty will have a sharp fall though patience can be tested for a few more days. Nifty is currently highly over bought and we do not see such highly over bought levels sustaining.
Good Trading To You!