Dear Members/Friends,
Those who never bought our services or books, they started criticizing about my predictions on market and I acknowledged my error many times last year. I have been reading all these comments very quietly. Today I decided to put a small part from last year’s book “2017 Financial Predictions”, what exactly we stated: From page number 40 to 43 of “2017 Financial Predictions”:
ASIAN MARKETS trend in 2017:
Shanghai/China:
The Shanghai market had one of the best rallies from January 2006 to September 2007. It went up from 1000 to 5000 in a non-stop rally. No other market has ever moved in five folds in the span of just 19 months. This was the era of commodities, and investors were not only buying commodities, but also stocks that were in the top list. Many short sellers were burnt very badly during this time. After that rally the Chinese/Shanghai market came down with the rest of the world during the global crisis and tested 1650 again. Since then the market has been trading stable, and yes it doubled in value from the lows by following the international markets.
We are predicting that a new era will being for China from September 2017. The Chinese/Shanghai Market will start marching up and will keep moving higher. This time the Chinese market will move independently without any major participation from international investors because the investors will be stuck in the US and European markets bear trend.
I want you to follow the Wave of Nature because the wave is going towards China and India. Keep investing money in YINN if you are not able to buy stock in the Chinese market. Allocate a certain amount of money every month to keep adding positions in the Chinese market. In the first half of 2017 the Chinese equity market will perform positively. We recommend adding some serious money in the Chinese market as a major bull trend in Shanghai will start from September. Keep buying on uncertainty if any comes in October, as November and December will be the best months for the Chinese markets.
On the higher side Shanghai will test 3825, and on the lower side we see it holding 2815 so watch these ranges closely.
The rally will be non-stop and Shanghai will test 5000 in 2018. Many Chinese companies are listed in the US and European markets, so you can buy these ADR’s, or simply buy indexes if you don't want to pick individual stocks. I recommend buying Indexes are there is less risk involved in doing that then picking individual stocks.
Final Note - Shanghai is one of our top three picks for investment in 2017.
Here 2017 trading ranges for Shanghai Index:
China (Shanghai): 3808 to 2978
INDIAN MARKET
The Indian market had a few headwinds over the last 16 months due to weakness in rupee and no clear RBI (Reserve Bank of India) policy. The RBI committee seemed very confused over the last 18 months during the Governor Rajan era. Prime Minister Modi decided to demonetize, and discontinued the Rs. 500 and Rs. 1000 currency bills on the 8th November which created a lot of panic for the short term. This move created a cash crunch in the country where more than 80% of the people’s daily lives run on cash transactions. 90% of people from the lower middle-class and below depend on cash transactions. Neither do they know how to use electronic transactions, nor do they depend on bank transactions.
Surely during the last quarter of 2016 many companies will have bad earnings, especially in sectors which are directly connected with consumers like auto, cement, retailers, telecom, consumer goods, etc. Anyways, we are not an economist, so we shouldn't be focusing on all this, let’s see what 2017 has in store for India.
Indian Subscribers to our daily report are aware that our view for 2017 is very positive for India, but the masses are not aware as a large crowd in India just buys our book because they feel that our services are too expensive.
I am putting China and India on the same level, both these markets are on our top list. The Chinese market will perform stable but the Indian market will face some volatility in the first quarter and mid 2017 when all the other markets will be suffering a huge setback.
There is no doubt that Saturn transiting in Sagittarius will bring a fortune to China and India, but the start will be slow and then the momentum will catch up.
The Indian market will start disconnecting 100% from the global equity market from the month of February. Currently the Indian market is not following the international market due to weakness in the Rupee, but we don't see the Rupee remaining above 68.75 in the coming time, and it will move towards 64.18 or even 62.55 in 2017, which will play a major supportive role for the Indian market.
In 2017 we predict that Nifty will gain at least 25% and move significantly higher in 2018. The era of a Bubble is on the way for the Indian market so investors should be well prepared for this amazing rise. We see Nifty moving towards 9570, and by the end of 2017 we won’t be surprised if Nifty moves towards 10000. On the lower side, we do not see Nifty going below 7711. If something drastic happens to all the major markets then there are chances that Nifty can test 7225, but the chances of this happening are very less.
In 2018 we are predicting Nifty moving towards 15000 to 17000. It will be the most powerful move due to the North Node being in Cancer and Saturn in Sagittarius.
During the months of January and February the Indian market will trade in a mixed direction, but in March, April, and May we see the positive momentum continuing and Nifty will trade positively. Any sign of weakness should be taken as a buying opportunity from March to May. Ignore the international markets trend, and don't pay any attention to what S&P or the European markets are doing.
At the end of June 2017, we recommend booking profit in the market, as from mid-July we see a lot of volatility coming in the international markets which may impact India as well. This period of volatility will be short lived so get ready to load up on stocks again in the month of September, because after August the Indian market will have a non-stop rally. Avoid buying the Indian markets in the months of July and August as major falls and corrections may occur in most of the global markets. There will be a very uncertain scenario developing during these two months so holding cash will be the best thing to do from June onwards.
A positive trend in Rupee, better economic numbers, and an aggressive RBI policy will be the key factors behind this rally. From all angles, the positive news will keep flowing, and why not, when Saturn is in Sagittarius. A positive astro cycle always does that, even in our lives, when the time changes, everything suddenly starts falling into place automatically.
Banking, Technology, Housing, Cement, and the Pharma Sectors will do well during 2017. Energy stocks will struggle but Reliance Ltd. will keep moving higher. In 2016 Reliance was one of our top picks, and we see it doing well in 2017 as well. Our target for Reliance is Rs. 1400.
Most of the tech stocks should remain in your buying list. INFOSYS, WIPRO, TCS, TATA ELXSI, GEOMATRIC, KALE, TANLA SOL, TAKE SOL, KELLTON, A2Z INFRA, CYBERTECH, TRIGYN, GM BREW, VADILAL IND, KWALITY KIRI IND, BODAL CHEM, JET AIRWAYS, & SBI. Many private banks and housing finance stocks will perform very well.
Overall, we are recommending every investor to have some exposure to the Indian equity markets. International investors can buy INDL, or many ADR’s and GDR’s that trade abroad. We are strongly recommending every Indian investor to just focus on the equity markets. Buy quality socks and avoid short term speculation. We are not recommending any buying in commodities so avoid them, and do not speculate in them. You must build wealth by protecting capital, and that only happens if you focus your investing on the longer term. I always stated that no one can build a fortune by speculation, gambling, or short-term trading.
Here 2017 trading ranges for Nifty Index:
India (NIFTY): 9897 to 7655
Also, in the yearly cycle of the USA market section we mentioned on page 37, in “2017 Financial Predictions”, that the market would be recovering strongly.
NINTH CYCLE
From 27th October to 1st December 2017: During this period the market will start behaving much better and there will be nice recovery in all major markets, after the volatile spell during mid-2017. We strongly recommend focusing all positions on Tech, biotech, banking, home builders, and construction stocks from the middle of this cycle. The international and emerging markets will make handsome gains during this period, so buy some aggressive positions in emerging market ETF’s.
USD may start losing aggressive value which will help many commodities and emerging market ETF’s. Keep adding positions in LBJ, INDL, and YINN during this cycle, and if you make a nice gain, do not forget to book profit and close positions by the end of this cycle.
Once again - Yes was wrong from July to October 2017 about market trend.
I leave decision of whether to buy “2018 Financial Predictions” or not on you, but I believe that 2018 Financial Predictions book will change many investors life, most of previous elevon book done that except 2017 market sections. This yearly book cost $351 and many thinks that it is expensive but if calculate and daily cost of this week is $1.00 as there are 365 days in a year. If you wish to know about 2018 Financial Predictions then click here to read more details about 2018 Financial Predictions: https://www.mahendraprophecy.com/2018-financial-predictions-book.php
We will post three important trades of this week on Monday, which shall give you great returns in the short period.
Thanks & God Bless
Mahendra Sharma