Monday, 19 May 2014

India NIFTY Index: 19 May 2014, Monday, 12.40am Singapore Time


India NIFTY Index: 19 May 2014, Monday, 12.40am Singapore Time
(DAILY CHART)

As per previous analysis on India when the NIFTY Index broke up 6431.32 points (outer most RED Resistance) and also broken up the BLACK up-channel, the rally indeed went up to the day the election results was out (7593 points area). 
Two sure case as previously mentioned:

If the Indian election result is within expectations or is something of a good news, markets will make a final 1-2 days fake rally to lure the final set of buy-on-news dafts followed by an all out sell-off, as the goodies have already been priced in long ago during the pre-election move. 
(LATEST: THIS HAS BEEN EXECUTED LAST FRIDAY 16 MAY 2014)

However, if the Indian election result is out of expectations or is a bad news to the market, the sell-off will be double in strength because the markets will had priced in wrongly during the pre-election movement of the Indian Financial Markets expecting good news. Not only must the pre-election market movement be vomited back, it must be doubly hammered below pre-election minor support made 9 weeks ago at 6000 points.
(MARKET MAY BE TRYING TO DISCOUNT THIS UNLESS MODI MAKES UNEXPECTED POLICIES)

What is sure is that the Indian market had remove all uncertainties for the post-election market movements in India. By doing a pre-election rally to price in good news in advance, whatever the Indian election results, just one result awaits: SELL-OFF in NIFTY, SENSEX and Indian Financial Markets. 



India NIFTY Index: 19 May 2014, Monday, 12.40am Singapore Time
(HOURLY CHART)

The above NIFTY Hourly chart leading to Modi's win is what had been happening.
Expect more of sell-the-good-news. People who buy on late rosy good news will be caught extremely pants down. And underwear down. It's gonna be gold down there, because the first target is 6188-6431 points. 

If 6188-6320 points band is not able to hold as support, it will be very ugly as 6188-6320 points break-up will be a big false break-up. Big false break-ups are very bearish in nature. If 6188-6320 points is able to hold as support, India will be in a very long term huge bull market (Real Huge).

Huge volatility awaits India in the year 2014-2015. Expect very high volatility now with 6188-6320 points a crucial for India financial markets.


Donovan Norfolk Ang Technical Rating on India NIFTY:
Bullish until the day the election results are out, and bearish after that;
Bearish also on all international stocks and equities

 (India NIFTY Index is available for shorting in IGmarkets)

Refer:
http://donovan-ang.blogspot.sg/search/label/India%20Nifty%20Index
http://donovan-ang.blogspot.sg/search/label/NASDAQ%20100

Related:
(Capital flight/exodus from worldwide bank stocks)

(The Great Capital Flight of Emerging Markets)

(Straits Times Index as preview of World Markets)

(Straits Property Index as preview of World Property Markets)

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3 comments:

  1. gajju21 May 2014 at 02:01

    hi .. any idea where we have to initiate short in NIFTY futures.and what will be tgt 6188??

    ReplyDelete
  2. Donovan Norfolk Ang21 May 2014 at 13:58

    You can initiate any time now.

    ReplyDelete
  3. gajju22 May 2014 at 09:42

    1000 points in nifty... great, is there any trend reversal levvel sir..

    ReplyDelete