LTP 8,576.00 -128.00 -1.49% High 8,710.00 Low 8,546.50
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SGX Nifty 10th May 2016
SGX Nifty / Nifty Futures today staged a great recovery / pullback. As per our analysis we are very clear that overall we do not expect upper side prices to last. As per Nifty Futures Tips / Nifty Prediction given to our clients our overall Nifty View remains the same that on rise we must get out of longs and short sell Nifty Futures as we see significantly lower side targets. Traders may recall that when Nifty was making a bottom process around 7000 levels and it was the exact inverse situation at that juncture. At that stage everyone was talking about 6500 and now everyone is talking about 8400-8100. We once again reiterate that as of right now Mercury is retrograde and hence such pullbacks will keep coming from time to time with a approximate frequency of every 1-5 trading days. Also Jupiter has turned direct today and as we have mentioned before also that this has a high frequency of amplifying the trends.
This is what we had mentioned yesterday
“Jupiter Direct in our historical studies has been showing us excellent amplification of the trend (in over 100 cases studied it has shown us amplification in 92 times hence has a very high correlation to primary cycle tops) though it may have some minor pullback and then go full throttle on the direction of the main trend. Mercury Mid point retrograde in Taurus has also very similar outcomes.”
So what we are seeing today is a classic proof of what we have got in our back tested results. Today we have seen a powerful bounce / pullback and hence we all the more certain that as per our historical testing post the pullback the trend or rather the main trend resumes in a powerful manner. It must also be noted that the more powerful the pullback the more powerful will be the trend continuation. Further it must also be understood that the stock markets which did not reverse at the time of Mercury turned retrograde have a significantly higher probability of turning around the mid point date and in addition to this Mercury will move through Sagittarius (all those studying astro cycles please find out what I am referring to. Please do not call me and ask for the results) This has also a very high correlation to stock markets falling into that period. There are many more astro cycle events which are coming together to suggest only one thing. This is not a area to trade or buy longs. It is a area to trade shorts and please understand our view this is what we are recommendation from a positional point of view not from a day trading or day to day view. (If you are not our Client and are trading only on the basis of this post then please use appropriate risk management and trade)
As per wave characteristics the speed of the pullback is also not showing us any major upsides. The low made 2 days back was at 7678 and there was a massive consolidation and further the initial round of the up move was extremely slow and lacked volumes and most important the volumes on the downside are seen increasing while on the pullbacks they are decreasing. The lack of speed and volumes tells us that more or less this is the top.
Use all dips to buy and hold our recommended stocks like renuka sugar, eid parry, bajaj hindustan, msl, tata coffee. All these stocks will do very well in the coming time.
Good trading to you!