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Today's Trade & News

Trump and Modi - Two different personalities, one is too much into politics and one is making economy great again...

Dear Members,

Metals started trading negative from middle of Wednesday as predicted, Our view was negative for base metals and precious this week so staying away will be best strategy. Gold is at crucial level and chances are very much possible to move toward $1145 and silver $13.87 if the close below $1182 which is crucial support level. many of base metals have achieved our lower side target in the last two weeks but still we are not recommending buying for the medium and longer term but surely Daily letter and weekly newsletter always helps to trade on short term. 

Oil may test $68.88 level, this is good level to take sell, but best level to go short is $69.87. Grains and softs are collapsing as predicted, coffee and sugar are close to bottom once Brazilian Real bottom outs and Brazil is key nation for both these softs commodities. We are predicting major turn around in Brazilian Real from 1 September so plan your trade accordingly.

Dollar Index came down from 97.18 and tested important astro support level of 95.15 level, dollar breaking this level will be interesting to watch movement in most of currencies. Emerging market currencies are performing very negatively, if Dollar Index moves toward 98.78 level then I don’t know what will happen in emerging market currencies. Many emerging market currencies are at historic lows which is really concern sign, is this a currency war in emerging market currencies or just these central banks are walking in dark without clear strategy. I will try my best to put out view in the next week newsletter.

S&P and most of markets are holding value as Trump is doing everything to support USA economy, he may be wrong on many issues on political ground but good for USA economy. Indian market tested all time higher during this week, Indian Prime minister Modi is making political decision correctly to keep him in power in the next elections, but he is not doing a great job on economy front which is bit concern sign.

Both leaders have one thing in common - Both don't like if media or people criticize them for their wrong decisions, they think that we are born with perfections but actual that is not that case with both these politicians. 

Here is small note from today’s daily Indian market letter:

lobally markets are trading mix and Indian market on Thursday also struggled to move higher. If you are buyer of frontline stocks or index presenting stocks then you are happy investor, but if you invested in B group (which represent large part of Indian economy) then you are not happy investor.

If you invested in private sector stocks of Index base companies then you performed very well, but if you invested in Government own companies then you are lost money every single day under BJP government.

I think financial media and analyst are just focusing on Mr. Modi’s personality and his speeches but under his governing all major PSU stocks got murdered so why anyone there is not taking responsibility and nor financial media, analysts and think tank pointing our this. Look at conditions of HPCL, BPCL, BHEL, PSU bank and many other PSU’s losing value like hell.

If Indian Ruling government unable to fix their own companies, then what they will do for countries economy. If you ask me then situations look very bad on economic front, the way they are ignoring economic and living in political dominating euphoria then Indian market will pay heavy price and investors will regret trusting this market and Modi’s team. Thanks to 1 billion plus population which is helping economy due to huge middle class appetite, and which helping India not to depend big way on export or on creative economy. Whatever you have to offer, there are consumer for that product and so far this helping India but remember Indian is sailing through without the support of great policies from Modi Government.   

Reliance Ind is only one company which making this market looks good (Reliance has been our top pick of last three years as every single day we recommended buying it), making market looks good but if you remove the value and gained of Reliance Ind from the Index of last two years then you will come to know real picture of financial market.

Neither I hate Modi nor I love him, yes I had a great hope when he become Prime Minister of India but things are not presented correctly in Indian media lately about the health of real economy. It looks like Finance Minister just enjoying his job or status positions without doing any great job, also RBI doesn’t have any control on Rupee movement, it looks like that they are writing cheque very happily of importing oil and gold which takes away big chunk from foreign reverse.

I think it is wakeup call, I predicted very bullish trend for Indian equity market, last month we predicted Nifty to test 11375 and 11775 and first target already got achieve and next target also could get achieve very soon. It is not important whether I am coming right or wrong, but I am worried about negative time cycle of middle of 2019/20 because economic number will be off chart. We also predicted that Nifty would test 12750 level soon but not because Modi’t team right decisions.

Western world opens the credit to very class of their populations, loans are available easily and if you are in real trouble then financial institutions are their to help, but what I am hearing from India is completely different. Now every financial institutions in India acting like that every borrower will run away with money, in simple way they are acting like that people thief’s and cheater which is not good for Indian economy, trust has be there between borrower and lenders, because of few people now trust has gone away but those few people doesn’t represent every Indian.

Anyway, I am not an economist so lets leave this topic here and lets pray that Modi and his team work in right directions to bring India on top but that is wishful thinking because at this stage reality is completely different.      

Thursday still many of our recommended stocks performed very well, on Friday we are still recommending holding positions in market. Mix astro combinations will support market trend, some profit booking will come but still undertone of market will remain positive. 

We are recommending to staying long in market until Nifty holds 11375 level and S&P 2788 level, bull market trend will remain intact. Don’t short market, but surely booking profit is not a bad idea. Our most of recommended stocks performing amazingly well and book some profit but also wait for Monday as I am releasing new buying list.

Read more about global market in detail with monthly cycle in our book “2018 Financial Predictions” book. This is most important book I have written in my career. I reduced book price from $395 to $155 so everyone can have this one.

Also, our new look of Website is coming from next week, I am excited about it.

In the month of September, we always comes out with special discount offer, so wait for next week if you are planning to subscribe for services or just subscribe for one week and wait for offer. We are planning to announce offer on 2 September 2018.

Thanks & God Bless

Mahendra Sharma