Nifty trend today / Nifty prediction today 21st Feb 19
Nifty trend today was bullish and we did see some good up move in the first part of the trading day post which Nifty was sideways in a small trading range and then once again towards the end Nifty once again started the up move. As per my Nifty prediction we had clearly guided yesterday that there is a high probability of a bear trap taking place as Nifty broke below 10600 in yesterday’s trade and most of the traders had bought puts or had short sold Nifty as most them were expecting Nifty to decisively break 10600 and move lower today or in the coming time towards levels of 10000. Some of you called me and told me that look Nifty has broken the trading range and hence they have gone short heavily but I told them also and have writing here that even though Nifty exactly moved as per our prediction and did not sustain below the level of 10600 that does not mean that Nifty is a blind buy nor does it mean that you can short sell as of now the trading range broadly between 10600-11000 is still intact and till the time the breakdown does not happen then is no point in taking any directional trades yes there can be some trades that can be taken from a tactical trading standpoint but not directional. Please keep in mind that till the time the trading range of 10600-11000 does not break with volumes or there is no thrust with volumes till that time there is no point in taking any directional trades on the Nifty. The sentiment indicators have turned very bearish and this happening at a time when Nifty is at the lower end of the trading range is a dangerous signal and hence we are predicting that till the time Nifty trend does not change from the current sideways trend to trending either up or trending down till that point in time be very careful as to what and where you trade. It is very important to keep in mind that though Nifty has been sideways for the past 5 months between 11000-10000 and then range has narrowed between 10600-11000 broadly speaking most of the stocks are at levels of around 6500 or 7000 and some of these stocks present excellent opportunity.
So in a nut shell in the very near term we do see that there are individual stock opportunities that should be bought into because they have reached deep value so look for companies and invest in those companies which have a good management, good earnings visibility, have cheap valuations, balance sheet is not leveraged or for that matter promoters stake is not pledged and the most important is that the business should be good even though the business currently may be going through a rough patch but the business must be good so if these criteria’s are present in the stock and there are a few of them they should be bought both at current prices and on dips as we see these set of stocks making good money over the next few months. Please keep in mind that we are not suggesting for one minute that the entire broader Indian stock market is at deep value no we are not suggesting that but surely in a few select names regardless of the events like elections etc lined up in this year we see that more or less these stocks have bottomed or are very close to a bottom and hence present some near zero risk investing opportunities and hence they must be accumulated in a staggered manner in your portfolio.
As usual if you are only trading on the basis of this post please use your own risk management and then only trade please do not over trade and always keep your risk in check before trading.
Good Trading to you!