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Nifty Next Week

Nifty opened gap up as expected. Nikkie not only recovered but was in positive territory from yesterdays levels. This is simply because there are set norms in the market where some or other investors come as value buyers. 

In India this is just impossible as there is cash settlement. Even if I have Rs 10000 crs today for investment in equity I cannot invest in equity for the simple reason there cannot be fair return on my investments in India unless I am part of the cartel either bear or bull. Hence genuine cash rich straight forward investors will never invest in Indian markets in current scenario where stock prices fluctuate 30 to 50% just for the settlement issues.

I had mentioned when Wockhardt was at Rs 1900 to stay away from this stock as any downgrade can wipe off your 50% of investment in no time. See what happened...? From high of Rs 2100 low of Rs 1060 on the FDI export ban. Now from hereon Wockhardt will rise again to Rs 1500 and 1600 from there again selling will start. Very soon Wockhardt will come in F and O. Same fate will happen with many high priced stocks.

Nifty ready to test 6300 soon for sure. Rate cut cycle turning positive on lower inflation. IPL scam will allow Govt to differ election till schedule which means more reforms before election hence Nifty has to be at new high.

Nobody really made big gains due to lack of direction in Nifty from 5490 till 6225 and they gone long only above 6130 but could not cash and stuck on long side. We sensed and informed you. Nifty crashed to 5950 as expected. Now nobody can buy due to MTM considerations and margin calls. Settlement pain there. Once this is over V shape recovery will take Nifty back to 6250 and on rate cut next month we will see Nifty crossing 6300.

We share our views yet advise to stay away from F O trades due to strong price movements. Thanks to cash settlement. At the same time those who play delivery without over leveraging will make good bucks on our calls. You can see our strike rate on the home page of our website. This is consistent. Therefore if you apply proper techniques to beat the pitfalls of current system you can still make profits.

Next 4 sessions will be volatile but there will be huge rally also for rolling positions. Now keeping short open will be even dangerous for operators. This conviction can also allow you to go long in stocks you prefer

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