Wednesday : Expect Indian Market to fall > 3% – Want to make quick money? Just go ahead & SHORT Nifty Future.

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Dear Subscribers,
Our reco on Tue worked well and you must have booked profit from Nifty LONG positions when it was 4% up in the early trade; at the same time as per our suggestion below 2700 you must have taken Nifty SHORT position too. Pls refer the link for
detailed mail sent to paid subscribers on Tue.

Market Update:-
It was a disappointing session of trade as the benchmark indices closed sharply lower due to weak European cues as well as negative US markets futures. It had looked like the session would be good for the entire day following a smart rally in the US markets on Monday but the rally got fizzled out in second half of session. Midcap and small cap stocks also tumbled.

Profit booking in late trade on weak cues from European markets pushed Indian stocks lower Tuesday. Nifty closed 2 per cent down at 2654, led by a sell-off in oil & gas, capital goods, realty and banking stocks. Nifty November futures provisionally ended at a discount of 11 points to spot, with the premium trimming from 9 points on Monday.

Investors are directionless about the markets. Given the trading pattern, markets are likely to come under pressure in coming days. With the F&O expiry near, markets are likely to remain highly volatile. At current levels I will advise players to hold their Nifty shorts keeping a stop loss at 2700.

At current levels we expect Nifty will face tough resistance at 2800 level while on downside we might test the October low. This is a traders market and I will advise investors to stay out until the volatility subsides. Mid to long term trend still looks bearish, so on rallies one can buy December puts at lower levels.

HBJ Capital’s View for Wednesday:-
On Tuesday markets opened on higher note following the rally in US and Asian markets but started to slide from the highs on the concerns that more financial institutions may need similar financial aids and also due to the fact that in spite of the various measures adopted by the world governments, the financial distress in global economies remain a truth.

Further the negatively trading US index futures and the European markets were sending negative cues to our markets and finally our market closed down at 2,654 losing near to 2%. As expected, the Nifty on Tuesday faced resistance at 2,800 and then declined below the support level of 2,700 on account of profit-booking in index heavyweights.

Indian markets are expected to open gap-down around 1-2% and it will continue to fall further; as of now % of rollover is lower & we have not see major short covering too. It means traders might leave their SHORT position and let them expire which will cause further fall in the market.

Strategies for Traders:-

  1. Based on the strategy suggested, you must have booked profit from Nifty LONG/CALL position; hence I would assume none of you have any LONG position now.
  2. We suggested you to take Nifty SHORT position below 2700 and We think you might have such position; in case if you have taken Nifty SHORT then just forget it and go for sleep at least for next 2 days; market continue to fall.
  3. If Nifty opens flat (+/-1%) then take a fresh SHORT position with stop loss of 2700 & just hold it for next two days. Pls do not take any LONG position now unless RBI comes out with rate cut.

Enjoy trading!!!
Sandeep Jain , Associate, HBJ Capital.

4 replies
  1. HBJ Capital
    HBJ Capital says:

    Dear Jai,

    Your suggestion will be taken care by our analyst team. Believe it or not we feel more pain when our call went wrong and in case of any losses by our subscribers or readers.
    Why we suggested not to take long position is because these bounces are for very short term and it is always better to trade with the trend.

    Sandeep Jain.

  2. Jai
    Jai says:

    There is no reason for you get furied.I have nothing against to blame anybody.If you can’t take it in right spirits then it is not my fault.My contention was you don’t need to give specifics advising like not to go long like that.You can give only possibilities and not predections.It is easy that I may not follow your blog but at the same time many innocents not to get taken for granted.That was in my message.I could make out how furious you were in your message when someone would give honest opinion and also if you say other blogs to compare with yours thats not the way to cover up.I suggested some improvements from you.If you can’t take it,well leave it…

  3. HBJ Capital
    HBJ Capital says:

    Dear Mr. Jai-

    We were not wrong, european market were weak, sometime around noon if china comes out with rate cut and asian market bounced, how can anyone predict such move?

    You are able to see that one day our market prediction went wrong but you are not able to see that many many day we were correct also. When you make money due to our reco did you even get time to say “thanks” and now you are getting enough time to write such comments.

    When we reco we always suggest to keep stop loss, anyone not adhering to that is not our mistake. Moreover we have very clearly mentioned that, investors/traders should do their due diligence before taking any action based on our analysis. We never force anyone to follow us.

    You do not have any right to write such comments, pls take care in future and you need not follow this blog, no one has request you to follow, there are many site like moneycontrol and many analysts appearing in TV18 you can follow them. Have you seen their track record, at least we publish our track record time to time, we have hardly seen anyone doing that.

    If you can’t appreciate our work, you have no right to blaim us.

    -HBJ Team

  4. Jai
    Jai says:

    You were totally wrong today.Wrong predections.Markets were bullish today and those who went long made tons today.Those who followed your advise today must have burnt their fingers by going intraday short.Don't give advise like astrologers saying markets fall >3% and don't go long like that.Innocent investors monety at stake and you have no reason to make them into losses by giving like astrolger prdection.Hope you would keep this in mind and don't repeat such blunders.

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