Dear Members,
For the last three weeks, we have recommended buying YINN, CWEB, BABA, BIDU, and PDD. We have also recommended covering shorts in the Chinese market, and this advice has proven great. Many members said, Mahendra, that you nailed this prediction of the rise of China and the fall of the Indian market. My response to all members is that this is my job, so I need to save members from coming negative times and push them into where the bull trend is getting born.
Today is the job report, and my advice is to book a profit on any rise in the market. There is still more uncertainty pending in the Middle East, and the seventh Astro cycle is coming negative and most volatile. This cycle will burn bulls and bears, so plan your short-term trading and investment strategy very carefully.
Those who bought books and letters must be doing very well, and I decided to hike the weekly and daily letter subscription prices from tomorrow.
Here is a small part from the Indian Daily letter.
On Thursday, the Indian market lost a lot of value, as expected. We have been recommending staying sidelined from buying and selling long positions in stocks and indexes. We also provided great hedging trades by buying put options and selling call options.
On Friday, higher-side selling is still recommended in Nifty and Bank Nifty as major buying is only recommended at the 23211 level, so keep this in mind. We are recommending closing long in markets and stocks on any rise, and we are also recommending staying long in put options and short call options.
A few points to remember:
Thursday was one of the worst days for the Indian market, the rise in Chinese and Hong Kong markets created some panic among FII’s missing opportunity of buying at historically low prices in stocks. Though they have gained huge value in the last two weeks, they are still cheap, and buying will come on fall or any weakness.
On the other hand, Indian market valuations have been not cheap at all. Indian market multiples are very high, so I won’t recommend buying stocks at current levels.
The rupee started trading above the 83.88 level, which is not a good sign for Indian investors and the Indian market.
Undoubtedly, there has been a massive inflow of retail participants from every corner of India. Still, when they turn cautious or start withdrawing from mutual funds, it could be a very dangerous sign for the Indian market.
Middle East tensions have been on the rise, and big investors are uncomfortable with the government favoring Adani Group too much.
Crude prices are on the rise, and that will be another negative factor, since the last two years, weaker oil prices have been a bonanza for the Indian government.
On Friday, astro combinations are unsupportive, so higher-side profit booking or selling is recommended in the market. Keep closing long positions in stocks and sell or keep building put options in indexes and stocks and keep selling call options of higher sides.
Next week could also be very volatile, so plan your trading strategy accordingly; small Astro support will be at the 24888 level.
My job is to give your overall outlook of the market, and your job is to plan strategy accordingly.
Thanks & God Bless,
Mahendra Sharma