SGX Nifty / Nifty Futures 30th Dec 2015
SGX Nifty / Nifty Futures Minor Trend is Neutral. SGX Nifty / Nifty Futures Major Trend is bullish / up. As per our Indian Stock Market Analysis we do not recommend to buy fresh at higher levels and we see Nifty turning down again from 7950-8100 Nifty spot levels area soon. We do not expect Nifty to sustain higher than 8100 for the time being so on rise avoid initiating fresh long positions and rather be cautious. With proper guidance and appropriate strategy we may also short Nifty Futures for Nifty panic targets of 7500 but around 7500 we will exit all shorts and start buying long positions. Position sizing, risk management will be very important over the next few trading days so if you are trading only on the basis of this post then please use appropriate risk management systems and then only trade. Avoid taking heavy positions at least for the next 15 days till the time overall volume returns in Indian Stock Markets (as most institutions are on a holiday so once they start resuming work back from 5th Jan 2016 then only will we see volumes return to Global Stock Markets)
Now that it is clear about our short term view lets me put out our view for the next 11-2 months. 2016 as per our analysis will not give any significant returns over 12 months if you buy and hold but if you trade in and out decent money can be made. In the year 2016 we see a euphoric rise towards 9000-8800 and also a panic after that euphoric rise, so the investors who do not book profits in long positions around 8800-9000 will not make any significant money. Timing the entry and exit will decide how much you end up making in the coming year and as per our India Stock Market analysis we therefore are suggesting a trade in and out strategy. In this we expect Oil & Gas sector to outperform the broader Indian Stock markets by a good margin so Oil & Gas must be overweight but the most amazing out performer will be sugar sector. Why ? Keep watching pink papers and news channels you will know the details and modalities in due course of time. Overall agro commodities like sugar, Soybean, Cotton will be the top performers for the next 12 months. To really make money in 2016 all portfolios must have good exposure to agro commodities stocks. I will update more details on 2016 later.
Nifty volumes continue to be very low. Nifty resistance and support for tomorrow is at 7980 and 7780. On rise towards 8100 sell for 7500-7600 targets and in panic turn buyers.
Good Trading To You!