LTP 8,576.00 -128.00 -1.49% High 8,710.00 Low 8,546.50
SGX Nifty 14th Dec 2015
SGX Nifty Minor Trend is oversold. SGX Nifty Major Trend is bullish. Yesterday we booked profits in Nifty Jan 7700 Put 1 Part shorts around 145 and today we have again did short sell Nifty Jan 7700 Put between 195-205 (This is exactly what I have been saying as per our view we are very bullish, but tactically if I see minor downside I will recommend exit and then reenter lower hence in the process reducing our cost of purchase and in this case increasing our cost of selling, this is done in order to manage risk and improve trade efficiency). As per our Indian Stock Market Analysis / Nifty Prediction we are very clear that Nifty is nearing its panic bottom and after the panic bottom we see Nifty moving higher towards 8800-9000. Once again I must remind traders / investors who are reading this post but are not our clients I am sharing my view with a 90-180 days view. I am not suggesting a trade / recommending a trade for next week. (That is a different thing that we can see good upside in second half of next week after 16-17th Dec 2015) But yet those who are not our clients and are reading our post must use appropriate risk management systems and trade. All the negatives are in the price. There are concerns that FII’s will pullout if Fed raises rates but if we take a closer look then we can see that FII’s have already moved out all the money for this year i.e. they already have outflows for this calendar year. So even if the FED does increase rates we do not expect a panic to come in the Indian Stock Markets.
Nifty currently has a time cycle panic cycle going on and we feel that in the next 48 trading hours a durable bottom will be in place from where Nifty will begin its rally. The risk reward ratio is totally in favor of buying the dips now and we once again reiterate below 7700 we do not see Nifty Futures / Nifty spot sustaining for longer time and please understand I am not predicting the bottom (I have communicated to our clients where what how etc all details have been given to them)
Nifty support and resistance for tomorrow 14th Dec 2015 si at 7490 and 7892. On dips towards appropriate supports or low risk entry points buy and hold. Keep managing risk and you will see in a few trading days what I am recommending / saying here.
There are a few set of stocks which are showing very good resilience and once Nifty makes its bottom then we will look to buy them as we feel these set of stocks could out perform the broader Indian Stock Markets.
Good Trading To You!