Nifty Prediction 7th April 20

Nifty Prediction Pullback of 9038-7511 is done see higher levels in next week Buy high quality stocks in delivery or sell puts for targets of 9000+

Many of you have been asking me that in spite of the situation where everything is under lock down and covid 19 cases have still not stabilised why are you still bullish ? 

So even though I am not expecting economic parameters to show any major up move I am expecting massive liquidity to  be pushed into the markets by all central banks and all Govt’s will eventually announce stimulus packages one by one but they will come. As of now many Govt’s and central banks have announced major rate cuts and some Govts have also given stimulus packages but we see that before 15th May we will see more of such stimulus packages and more accommodation by the central banks so though the economy on ground will take some time to come back to normal we do not see stock prices remaining here for the time being because there is a lot of value available after a very long time in the markets so all the top guns of the market are buying high quality names (we wont name them but all the major investment gurus are buying high quality) and we agree with their strategy for now. Anyway’s coming back to the point the idea is to buy high quality in delivery and hold as the massive liquidity driven rally is going to come. It might be similar to 2009 scenario where prices started rallying ahead of economic parameters and that is exactly what we see happening in the coming weeks and hence this rally though it will be a pullback rally will take prices higher or rather significantly higher from here and once again I am stressing on the point that this will purely be a liquidity driven rally not a fundamental economic recovery rally so keep that in mind. 

On covid 19 our estimates are that cases should start to peak in India by Wednesday 9th and by around 16th April we should start seeing stability on the virus front. Globally also covid 19 problem will be totally taken care of by around 15th May but as stability emerges we will see stock prices moving higher.

Once again we reiterate that we see this as a great opportunity to buy high quality stocks in delivery and hold for the next few weeks. Longer term I see Nifty at 23800 in next 5 years time from now so from that perspective buying now is a great opportunity. From a traders perspective more or less pullback of 9038-7511 is done and we see 9000+ soon and eventually event 10200+ keep in mind pullbacks will keep coming from time to time and ideally traders must buy the dip not on breakouts so trade in high quality names on buy them on pullbacks. From a Nifty perspective selling puts will be a better strategy rather than buying call or buying Nifty Futures.

Usdinr also has more or less made a top and based on my calculations we see usdinr pair heading for 70 from here so selling higher side calls and rolling over for next few months will be a good strategy. 

Silver and gold I would avoid for the time being.

Good trading to you!

Part of what we did

[9:15 AM, 4/3/2020] Glenn: Good morning [9:15 AM, 4/3/2020] Glenn: Hold positions as told [9:15 AM, 4/3/2020] Glenn: Will update as and when anything needs to be done [9:19 AM, 4/3/2020] Glenn: Pullback / retracement of 9038 to 7500 is more or less done. We see Nifty heading higher towards — now from these levels. Use dips to buy delivery in recommended stocks and hold [9:47 AM, 4/3/2020] Glenn: Hold sail bandhan reliance remaining long qty [9:47 AM, 4/3/2020] Glenn: Nifty 8000 Put short hold 1 Part [9:48 AM, 4/3/2020] Glenn: Bank Nifty put short hold 1 Part as told [10:56 AM, 4/3/2020] Glenn: Nifty 30 April Sell 7600 Put 1 Part at cmp/323 [10:57 AM, 4/3/2020] Glenn: Nifty 30 April 8000 Put short hold 1 Part for sell at 421 and Nifty 30 April 7600 Put hold 1 Part short [10:57 AM, 4/3/2020] Glenn: Bank Nifty Hold 18500 Put short 1 part [11:11 AM, 4/3/2020] Glenn: Hold sail bandhan and remaining reliance long qty as told [12:09 PM, 4/3/2020] Glenn: Tata chem buy between 214-210 SL 208 TGT 223 [2:41 PM, 4/3/2020] Glenn: Hold positions as told [2:42 PM, 4/3/2020] Glenn: We see 9000 plus in next week and overall consolidation will end taking nifty towards 10200 [2:47 PM, 4/3/2020] Glenn: Don’t recommend buying calls selling puts as told is recommended hold 8000 Put short and 7600 Put short [2:49 PM, 4/3/2020] Glenn: If Nifty starts up move now in speed consider that pullback or retracement of 9038 to 7500 is done and next leg is heading for 9000 plus

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