Nifty trend today / Nifty prediction today 12th Feb 19
Nifty trend today was choppy with a negative bias and we did see some intraday recovery however that was sold into and Nifty closed negative for the day based on our Nifty prediction we have clearly mentioned that we see Nifty being in the trading range of 11000-10600 and till the time we do not see any volume breakout from the trading range it will be best to leave Nifty aside and look at individual stocks and trade in them. Keep in mind that despite many events like budget and the credit policy Nifty still remains within the trading range so in the lack of events it will be interesting to see how Nifty moves out of the trading range and hence we are suggesting to look for individual stocks. If you are looking to trade stocks then look for counters that are in clear trend either up trend or a down trend that does not matter but look for a trend and trade in them, if you are looking to invest then look for deep value stocks where there is good management, clear or at least decent earnings visibility and where there is valuation comfort we have initiated buying calls in two such counters today where we see both the stocks giving over 100% returns over the next 2 years so since both these stocks have reached deep value areas we will adopt a spread accumulation strategy in them.
Many of you have been calling me and telling me that many midcaps are falling like nine pins and if you go back a few weeks we had clearly predicted that broadly speaking we don’t see money will be made in stocks from current levels because Nifty is not showing the real picture while Nifty on the face of it shows everything is fine in reality it is a handful of 10 stocks that have been responsible for the level Nifty is showing but if you take out these select stocks then the broad market is trading around the 7500 level and hence we are saying that look for individual names where value or rather deep value has emerged. I am not suggesting that the ultimate bottom has been made for all the stocks but selectively the downsides in some select names is very limited and both the possibility and the probability of stocks where there is deep value surprising on the upside is very high.
Good Trading To you!