SGX Nifty Futures 20th May 2015


SGX Nifty Futures 20th May 2015

SGX Nifty Futures started showing signs of reversal today in second half of trade. We did Buy May 8500 Put and are holding that position (booked part and holding remaining qty). As per our SGX Nifty Futures Prediction and Nifty Trend both major and minor Nifty trend remain down. Nifty Spot resistance is at 8434 untill and unless 8434 is crossed even Minor Nifty trend remains down. If Nifty Futures starts free fall on 20th May Or 21st May 2015 then we will get final confirmation for 7631.

We were expecting a rate cut of 25 Bps by Reserve Bank of India yesterday or today however we have not got any rate cut till now. Anyways it does not matter. SGX Nifty Futures has resumed its downward trend and we have secondary confirmations for Nifty Futures target of 7631. On rise and towards low risk entry points we must sell and short Nifty Futures. Remember since Mercury goes retrograde today we will be getting plenty of counter trend moves and Nifty will suddenly change directions and keep trapping traders on the wrong side. Hence traders and investors need to trade with strict stop loss and also should keep taking profit at regular intervals as sudden counter trend moves will keep coming. Since main and minor trend is down we will keep getting counter trend moves ranging from one to four trading days. These counter trend moves or pullbacks must be used to exit trapped long positions or sell into the rallies / counter Nifty trend moves that come.

Nifty Futures components   Bajaj Auto, Tata Motors, ONGC under performed the Nifty 50 today, while out-performance was seen in Hero Motors and Tata Steel. (There is some buzz on Tata Steel buying xyz company). L&T has resistance at 1652 Nse spot level if L&T does not cross 1652 before Friday 21st May 2015 L&T will test lower area of 1350-1410.   Lupin break below 1560 Nse spot level will create mayhem. Once again kindly recollect we have been advising to stay away from most long positions as negative time cycle has once again got confirmed and will last till 10th July 2015. So Nifty Futures till 10th July 2015 can even test 7150 so most long positions or investments will eventually go for a toss. Hence extreme caution is advised we don’t see fundamentals of Indian economy changing overnight and macro picture for India is getting bad day by day so kindly follow messages and trade avoid all stunts right now.

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Good Trading To You!