Tomorrow British public will vote for/against Brexit. But I strongly feel it will vote in favour of Brexit. What is going to be impact on “economies” of the world or for that matter to India is a subject of big buzz these days . But in nutshell my opinion is it’s going to make difference to Britain most(my opinion is negatively) and for the rest of the world its going to be non-event, apart for a few jitters in world market.
Markets going exactly as per my last blog post (http://valuecm.com/blog/2016/03/05/my-market-outlook-buy-any-shit-you-will-make-moneymay-be-more-may-be-less/ ) since the feb end lows of the market. And these are the opportunities(if it happens) for fresh/re-entries.
To be short and precise I expect a decent dip (not a crash) immediately after the outcome of the referendum . And I would love to see that to have a quick gains in the bigger cycle mentioned in my last blog post(link above) . Index wise following should be the strategy and I expect it to happen:
In the panic (if what I have judged about the outcome of referendum is right) NIFTY should test 7950-7880 (today’s closing is 8270) kind of levels and buying around those levels can immediately give retracement to 8200 and further up to 8600 in very short term. So if get that chance that will be a boon to those “left outs” to have a good entry point.
Bank NIFTY can be a mint tool in the above said scenario and can test sub 17000 levels(today’s closing 17892) and 17000-17100 can be a good entry point for immediate retracement to 17800 and further up to 18400-19200-19800-20400 in very short term.
Dow jones being more mature can see 17400(today’s close 18011) and will be good to buy in 17400-17500 levels for immediate retrenchment to 18000 and further rise to 18600-19400 in very short term
Though I am lazy to post a lot will try to keep posting on twitter (@valuecm) and as always persons in contact will keep getting stock specific ideas with real-time trade positions and index updates .
Finally this will be a good time to make a killing in options.