Nifty Futures / Indian Stock Market Today’s Update 06-04-18
Nifty Futures today zoomed higher first on the back of positive global cues thanks to the sharp recovery in the S&P 500 and then that bullishness was taken forward thanks to the neutral to dovish policy by Reserve Bank of India but most importantly that bullishness was further given good steam by some decent short covering due to which Nifty Futures zoomed higher today along expected lines. Yesterday most traders and investors were seen short selling Nifty Futures and exiting longer term positions that had been built in the Indian stock market and everyone was expecting that Nifty Futures is now heading towards 9700-9800 area but we had clearly mentioned that though longer term we are not bullish on Indian stock market in the very near term we do not see Indian stock markets or the Nifty Futures sustaining on the downside because as per our analysis in the near term the selling had been over done and we did openly say that we do not see near term downside directly taking place and once again our combination of wave counts, time cycles, and astro cycles showed us the path ahead of time and that’s the reason we were buying yesterday and have been on the buying side from lower side levels of around 10000 on spot Nifty levels. We did buy around the lows of yesterday also and booked that positions today morning. You may please refer the chat transcript given below for details.
Now many of you have been asking me that if this is a pullback till where will it go and for how long will this pullback last. Well that we will answer to our clients and keep giving them updates as to when we should get out from longs that we are currently holding and when to get back into shorts for the longer term bearish wave or cycle. A word of caution kindly do not get overly bullish and start buying into portfolio or stuff current pullback whenever it ends will lead to sharp decline in the markets that’s a different question where and how it ends but the basic idea is to get out of stuck long positions if you have any or to reduce portfolio longs if any as we are not in the camp which sees the markets heading for new high or 11000 area sure the rally or the pullback as we are calling it can have some more steam due to the massive short positions that are currently present in the system but overall keep in mind that we are in a bullish phase in a bearish cycle so trading long, for the time being, is ok but do not lose sight of the longer term picture which remains very bearish for both Indian stock markets, Nifty Futures and the global stock markets.
From an astro cycle perspective there are some very important dates coming up shortly so be very nimble footed and trade in and out as we said that sharp zigzag movements will keep taking place from time to time so be very alert and do not get overly bullish in the near term nor overly bearish in the near term. Longer term we do not suggest portfolio buying unless and until we see deep value emerging which is still some time away.
Icici Bank has been rallying for the past 3 days now after making a low around the 255 area which is exactly what we had mentioned in our 3rd April Update. This is what we had mentioned “technical perspective the eventual target for Icici Bank is around 160 but in the near term we see support around 250-255 area so holding 250-255 area in the near term we could see a bounce in Icici Bank, however, we do not see any sustainable rally and we do not think that from a valuations stand point Icici Bank has still reached deep value levels.” You can refer the entire post below
Part of what we recommended today.
4/5/18, 8:59 AM - Glen Drago: Gm 4/5/18, 8:59 AM - Glen Drago: Hold positions as told 4/5/18, 8:59 AM - Glen Drago: If anything to do will update 4/5/18, 9:15 AM - Glen Drago: Nifty Fut book 1 part which was bought yesterday 4/5/18, 9:16 AM - Glen Drago: Confirmation Nifty Fut booked 1 part 4/5/18, 9:16 AM - Glen Drago: Nifty 10200 April Put hold 1 part Short and Nifty 10300 April Put hold 1 part Short as told 4/5/18, 9:16 AM - Glen Drago: Confirmation Nifty Fut booked 1 part for buy done yesterday at 10120 spot levels 4/5/18, 9:17 AM - Glen Drago: Nifty 10200 April Put hold 1 part Short and Nifty 10300 April Put hold 1 part Short as told 4/5/18, 9:17 AM - Glen Drago: If anything else to do will update 4/5/18, 9:17 AM - Glen Drago: RBI policy is expected to be neutral but we could see some dovish statements helping Indian equities in the near term 4/5/18, 10:50 AM - Glen Drago: Nifty 10200 April Put hold 1 part Short and Nifty 10300 April Put hold 1 part Short as told 4/5/18, 10:51 AM - Glen Drago: if anything to be done will update 4/5/18, 10:51 AM - Glen Drago: Crude Oil Hold 1 Part short as told 4/5/18, 1:28 PM - Glen Drago: If anything to do will update 4/5/18, 1:28 PM - Glen Drago: Nifty 10200 April Put hold 1 part Short and Nifty 10300 April Put hold 1 part Short as told