SGX Nifty 4th Jan 2016
First of wishing all my readers and clients a very happy and prosperous new year. The past few trading days have been lackluster and have been devoid of any real trading volume, hence we decided to take a small holiday for 2-3 trading days.
SGX Nifty / Nifty Futures Minor Trend is Neutral. SGX Nifty / Nifty Futures Major Trend is bullish. As per our Indian Stock Market Analysis we do not see Nifty heading much beyond 8100 for now and we expect Nifty to halt its current pullback that started from 7553 between 7950-8100, even if 8100 is taken out we do not see any significant upside in the Indian Stock Markets / Nifty for now and we see a panic bottom being formed around 7500 spot Nifty levels soon. So we do not recommend to buy fresh on higher side, in fact it will be good to short Jan Future calls as and when volatility spikes up and and Intrinsic value of calls begin spiking up. So the ideal trade will be to sell on rise towards 8100 when volatility starts spiking up and volumes return to the Indian Stock Markets. Please understand that longer term after the panic around 7500 we see Indian Stock Markets entering super bullish phase and we see targets of 8800-9000 being tested. This as per our analysis will be the best time in the coming 11 months to trade long and possibly we may even consider leverage long trades at some juncture as we could see a sharp X wave taking Nifty towards 8800-9000. So the best trade will be to buy around 7500 and book profits around 8800-9000. This will be a trade in and out trade as we do not see Nifty sustaining on the higher side around 8800-9000 for long time so our readers must understand that whatever positions are built around 7500 in panic bottom formation must be booked around 8800-9000 levels as after 8800-9000 we see Nifty again sliding back lower and if you do not book profits at the higher side and if you choose to hold on then in that case hardly any money will be made. So the best trade for the next 11 months or so will be buying lower in panic and booking profits around 8800-9000. I hope I have clearly communicated our view for the medium term. In the short term though we do not see Nifty moving much higher than 8100 and expect it to reverse in speed towards 7500 from the range of 7950-8100. A important point to note is that 7500 is not sacrosanct and it could be breached for a few trading days so even if Nifty closes below 7500 in that panic then buying positions must be accumulated tactfully using appropriate risk management systems and procedures. Proper spread buying must be done and proper position sizing must be followed. (if you are not our paid client and do not receive our messages then please trade using proper risk management systems and trade)
Nifty support and resistance for tomorrow 4th Jan 2016 is at 7873 and 8005. On rise avoid fresh trading long positions and in panic around 7500 start buying for 8800-9000. Nifty 50 spot levels mentioned.
Astro Cycles Update for this week.
Mars will enter Scorpio on 3rd Jan 2016 (as per western astrology) followers of W D Gann know very well that Mars was considered one of the most important planets for short term trend by Gann so we need to analyze what this could mean for Indian Stock Markets. Mars represents aggression, war, combat etc) Scorpio represents vision, power so when both are combined it could be a powerful trend change with volatility. January 5th 2016 begins yet another Mercury retrograde during this phase we expect many false news to be planted to fool the general public or trading community to watch out for that, please verify the news before acting on it. As per our historical correlation during Mercury retrograde we expect the Indian Stock market to suddenly change directions every 1-4 trading days, so expect sudden news changes and trend changes. Nifty will be changing directions very fast as a result most of the trading community will get very confused to short or long so please keep booking profits at regular intervals at least till 20th jan 2016. On Jan 7th 2016 Jupiter changes direction to stationary and this is a level one geocosmic signature for primary cycles having orbit of influence of 7 trading days. So will be form a panic bottom by 15th Jan 2016 ? lets wait and see. Change in Jupiter direction on 7th Jan 2016 is also indicating that jobs numbers could be good infact so good that it could send a fear signal down the markets spine that FED may now consider aggressive rate hikes and that could begin a panic in Global Stock markets also. So expect some good volatility from 5th-7th Jan 2016 and in that volaitility we will see a panic bottom around 7500 Spot Nifty.
Good Trading To You!