SGX Nifty 8th March 2016

SGX Nifty

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SGX Nifty Live

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

SGX Nifty 8th March 2016

SGX Nifty / Nifty Futures had yet another day in the green and finally managed to close the day flat to positive but the overall week was very positive, in fact it was one of the best weeks in years and that goes to show how fast the move from 6825 to 7500 levels has been. SGX Nifty / Nifty Futures Minor Trend is up / bullish. SGX Nifty / Nifty Futures Major Trend is bullish / up. Lets us look at the overall picture Nifty is showing us for now.  Last week on 28th Feb 2016 we had a level 1 geocosmic signature and Nifty turned up from that reversal date. Now this week is full of action as per astro cycles are concerned and there could be massive bullishness due to short covering and the FII’s hiking India exposure from now on.   First on 5th March 2016 Mars moves to Sagittarius so Mars represents action, aggression and Sagittarius represents exaggeration, expansion so be very clear that whatever moves will take place will be with added speed and move could even get more faster from here on.  8th March 2016 Sun opposition Jupiter (This is again a level 1 geocosmic signature but in our historical back testing studies we have seen that if there was another level 1 geocosmic signature present 8 days before then in that case Sun opposition Jupiter fuels and expands the current trend it does not end up changing the trend rather in 94 percent of the times it has only added more power to the existing trend so that means the trend is up will this level 1 signature act as a larger amplifier needs to be seen) in addition to these amplifiers there is also a solar eclipse and a new moon the same day on 8th March 2016 and 2 days later post the new moon on 10th March 2016 moon is at Perigee to earth (means the closest point in terms of absolute distance)  and this in our historical studies has also shown over 89 percent correlation to extending and amplifying the current existing trend (moon will be in Aries sign at the time of Perigee and Aries is ruled by Mars which also indicates more aggression in the trend) Hence all the astro indicators are pointing out to a massive amplification of the existing trend so keep that in mind it wont pay to trade for 100 points if the Indian and Global stock markets start zooming means we are in for some irrational exuberance or as in our language we say “Bina kaaran Tezi” Some people may call it short covering or some may call it non sense bottom line is Nifty could stage a crazy bullish move in the next few days. Most people will keep looking for what share market news is expected or what has come out and to our understanding we have said this time and again that there is no point in following share market news flow as it is always a trailing indicator not a leading one.

Lets now look at the sentiment indicators. Everyone whom we have spoken to is still very pessimistic.  Not one of the institutions we have spoken to talk bullish all those guys are only talking one line “There is no change in earnings picture and growth will remain subdued” Our point is that if only  earnings moved the markets then all the analyst and people who can understand balance sheets would have been billionaires by now but they have not become billionaires so only earnings growth will not move the market it is a combination of many other factors too but coming back to the point most of them are not having any significant India exposure and their general talk is that the rally is over done now we do not see much more upside. If we talk to the Janta and traders or the HNI’s they all have just one thing to say “hogaya hai rally now we do not see above 7600”  which means that there is total consensuses in the markets that 7600 will not be taken out and there is no need to buy after such a rally to add to this sentiment indicator most people and traders are heavily short at lower prices so if we take a synopsis of the current picture (no one is long, no one believes Nifty will move beyond 7600, everyone is short, everyone wants to add more shorts, those who were long have booked out or having negligible positions ) This to our analysis is the perfect back drop for a massive panic buying which is possible next week.  In our analysis whenever entire market participants expect the same thing to happen that has never every happened. Few days back all of these people were talking about 6500 and 6300 not one person said 7300 but now everyone is clear that not above 7600 so you know what to expect.

Lets now take a look at the charts if we see Nifty has been consistently making higher tops and bottoms which is classic text book tezi / bullish structure. When the overall picture on every time frame is bullish (ranging from 5 min charts to daily)  we should remain bullish and keep trailing long positions till the time Nifty does not signal a change in trend. Nifty on Friday 4th March 2016 was seen consolidating and post  the consolidation (during the consolidation Janta has added more shorts which is another classic short trap)  we are expecting a sharp up move so lets watch the price action on Tuesday 8th March 2016, if Nifty starts moving faster then there is a high possibility of Nifty touching 8000 by 15th March 2016 (more details on this target will be given to our paid clients during Indian Stock market hours on Tuesday 8th March 2016)

For longer term we see good value in MSL, Bajaj Hind, Renuka Sugar, EID Parry, Tata Coffee, NMDC Kesoram use all dips to buy and accumulate them. We see a good bullish move for these stocks. Avoid Banks as we do not see them out performing by huge margin. We had clearly mentioned that IDBI bank and Bank of Baroda are better than Bank Nifty and we did trade in and out of them and make good money. Sugar looks very good to us.

Good Trading To You!