Nifty Prediction for tomorrow 14th June 2021

Nifty Prediction for tomorrow 14th June 2021 Nifty looks exhausted yet keeps drifting higher. Be very cautious as multiple indicators suggest sudden reversal can come.

I remain very cautious because for traders we need momentum and when after such a large move almost all daily candles stop showing any momentum. Then start showing divergence. Everyone in the world from my friends to society people to even the chai walla has started asking me where to invest? I know this is a dangerous scenario. I have seen this movie play out many times and every time retail guys have got decimated because the underlying reality and stock markets as of now are totally divergent. The real economy is struggling while stock markets are soaring. 

Nifty Prediction for the second half of 2021

Yes, we had predicted that we are heading for hyperinflation. Yesterday’s inflation numbers (USA) proves us right. The FED will downplay this for now saying this is transient or temporary. I do not see that inflation however is transitory or temporary. So if inflation keeps being very high we do see world central banks will eventually. I say eventually have to start hiking rates even though growth remains low and that leads me to our stagflation prediction. 

I am not suggesting FED and other central banks will start hiking rates from tomorrow but yes after being in denial for a few months or weeks most central banks will raise rates. Now, the stock markets around the world are not poised to take any rate hikes as per my calculations. So will this be the reason for the next larger degree down wave remains to be seen? For now, just keep this in mind. 

Nifty Chart and outlook for the next few days

The below chart shows significant divergence and a wedge formation. A combination of both makes me very cautious. Add to this the various astro signatures present in the next few days and sentiment is not a good combination for sustained up move.

Nifty Prediction for tomorrow
Nifty Prediction for tomorrow

Bank Nifty Prediction for tomorrow

Bank Nifty is weaker than Nifty. We have been trading in and out of bank nifty taking small profits. Our outlook is if the larger patterns are true then we see bank nifty leading the fall lower. The sheer underperformance of bank nifty along with chart formations suggest that we are heading for 30000 targets. However, having said that no confirmation has come yet. Keep this in mind and hence look to short on rise and keep taking regular small profits and try to trade.

[09:15, 6/11/2021] Glen Drago: Bank Nifty sell 2nd part at cmp / 35330 spot level mentioned

[10:44, 6/11/2021] Glen Drago: Bank Nifty book profit in 2nd part at cmp for sell done at 35330 spot level today morning continue holding 1 part short done at 35100 spot level

[10:54, 6/11/2021] Glen Drago: Bank nifty net cost for part 1 35275 spot continue holding will update as and when anything needs to be done. till we do not get confirmation do not trade qty. trade very light for the time being.

As usual, if you are only trading on the basis of this post please use your own risk management and then only trade. Please do not over-trade and always keep your risk in check. 

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Glen Drago