NIFTY - Overfed And Then A Kick In The Guts - 12/21/2016
First come the hype of rising economy under the sobriquet - BRICKS. That hype got extra air in the balloon by loquacious leader. Party started with free money provided by QE ( courtesy of Fed ) would have still been rolling if it hasn't got the kick in the gut by demagogy and populist pandering. Being long Indian stocks is dangerous especially in the face of rising dollar and very positive US investment sentiment. Well, a day of reckoning will come for US stocks too but until that arrives, people will take their money back and invest it back into the world's best market to invest during the rising yield.
Individual components of the NIFTY have been massively overpriced and entire balloon can come crashing down. To rekindle the positive bias, NIFTY must regain the territory above 8250. And even after that, 8500 is a big wall to crack. So our bias for the stocks is negative. We are short the broader index with selective exploitation of support levels with buy-side trades.
As we did with 8000 support level, we are willing to dabble with long trade near 7750 and 7500. So in short, neutral between 8000 - 8200, short near 8500 and long near 7750 / 7500.
Besides, for individual stocks we are always eager to buy from good support levels during the rout. E.g. our pending trade in AUROPHARMA
Individual components of the NIFTY have been massively overpriced and entire balloon can come crashing down. To rekindle the positive bias, NIFTY must regain the territory above 8250. And even after that, 8500 is a big wall to crack. So our bias for the stocks is negative. We are short the broader index with selective exploitation of support levels with buy-side trades.
As we did with 8000 support level, we are willing to dabble with long trade near 7750 and 7500. So in short, neutral between 8000 - 8200, short near 8500 and long near 7750 / 7500.
Besides, for individual stocks we are always eager to buy from good support levels during the rout. E.g. our pending trade in AUROPHARMA
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