Nifty Today’s Trend, Prediction, View, Target 17th Sep
Nifty zoomed today and closed the day higher by 145 points. There were many traders who had taken STBT or were holding shorts in Nifty Futures and today morning they were forced out and many traders were stopped out of their respective short selling positions but today’s Nifty trend was exactly what we had predicted and expected and that was the reason we had booked part profits in our Nifty Futures short selling positions. Regular readers of this website are well aware that we have been saying that although the trend is down we will be seeing pullbacks from lower support areas and hence we were guiding that the best strategy would be to keep taking profits in respective short positions and avoid sell and hold strategy for the time being since we were expecting Nifty to hold the area of 11250-11300spot Nifty levels mentioned and give a up move from there towards pullback our targets of 11___—-11____and Nifty has exactly done that and moved in line with our predictions.
Today many traders have become optimistic and have taken BTST and long positions and gone home on the hope and expectation that Govt of India and Reserve Bank of India will be coming out with some major news flow and some major scheme in order to curb manage Oil Imports and in order to manage the depreciation in the rupee but we do not feel that any step taken now will have any significant impact because the core problem and the main reason for the rupee fall is Fiscal deficit and Current account deficit till the Govt fixes these problems we will not see any meaningful halt in the depreciation of the rupee and in the longer term we see rupee even depreciating to the levels of 82 although in the near term after the current pullback we see the rupee spending some time between 75-71 levels but eventually that will not hold and we will see the rupee heading for levels of 80-82. Anyways many traders have become bullish today and the traders outlook has suddenly changed from extreme bearish positions to neutral to bullish positions. I would not say very bullish but yes there are many traders who were seeing aggressively buying into the market today. So what do we see from here on? We expect Nifty Futures and Bank Nifty Futures to remain choppy with a downward bias but selling should only be done at appropriate levels keeping your risk under control. Do not sell anywhere and anyhow because the markets are expected to be choppy and trade in and out and be nimble footed for the next few trading days.
As per our analysis near term trend is down. Our prediction and view is to sell on risk at resistance areas with proper stop losses in place for lower targets and keep booking profits also at the same time. Reiterate for the time being sell and hold will not be the best strategy.
Good Trading To You!