SGX Nifty 27th May 2015
As of now SGX Nifty is trading at 8320 if this trend continues and Nifty Spot breaks 8320 then Minor trend also resume down. Under certain conditions (if few parameters are complete) then Nifty will touch 7800-7900 by 2nd June 2015. Extreme caution is advised to traders who are holding long positions. Kindly trail with appropriate stop losses.
SGX Nifty 27th May 2015
SGX Nifty today was sideways. After Nifty spot made a low of 8320 (Exactly our support area) Nifty pullback to 8355 Spot Nifty and closed at 8339 down 31 points. India VIX was up today indicating volatility is going to rise going forward. As per our Nifty Prediction and Nifty Trend Minor Trend is Neutral and Major Trend is down. If 8320 Nifty spot breaks then Minor Trend will also turn down and we can expect a sharp and super sonic fall towards 7900-7800 Nifty spot level by 2nd June 2015. SGX Nifty tomorrow has resistance at 8447 Spot Level and final support is at 8320. As of now looking at the overall picture (Bank Nifty breakdown and USDINR breaking out) we expect Nifty to eventually breakdown below 8320. So caution must be used while trading. As per Financial astrology Mercury is retrograde and it is very much possible to see sudden moves coming out of nowhere. So counter trend moves ranging from one trading day to four trading days is possible.
USDINR we have been advising to impex traders to hedge positions. Today rupee gave a break down vs the US dollar. Our Target for USDINR is 65.31 in current move and overall in longer term it can even touch 72. (Final confirmation awaited) will give more details to clients live during market hours.
From Agri commodities cotton and crude oil may show sharp volatility over next 3-5 trading days. Traders may trade in and out of them. Better still avoid and look for entry points into main trend. Cotton will do very well in next calendar year.
SGX Nifty Constituents 27th May 2015
ONGC and Tata Motors were top losers today both shed 1.5% Metals as asector outperformed the Nifty 50 today. Pharma sector also was showing signs of underperformance today.
Tata Motors net income was at Rs67,576 Crs vs 65,317 crs Year onYear.
Overall advance decline ratio was in favor of the declines – out of 2,626 stocks traded on the BSE so far 1,482 stocks have advanced, while 1,034 stocks have declined. Vedanta and Reliance Industries was also among the stocks dragging the Nifty 50 today. Most of the analyst or broking houses are expecting earnings to revive going forward towards 14-16% but we don’t see economic growth picking up that soon and even before we see that one major rest is on the cards. Extremely high valuations, low earnings growth, bad liquidity scenario is not a good sign to invest in equities historically. Money will and can be made when you buy cheap before upmove cycle begins in my personal experience money has never been made by buying at hefty valuations like the one prevailing today.
BHEL reported good set of Q4 numbers and jumped up by 5% overall results beat the street expectations also some short squeeze was seen.
SGX Nifty Updates will be given as and when possible. For details of our advisory services feel or HNI Broking services free to call me on 9222294707.
Good Trading To You