Nifty Futures Outlook 2016
Over the past few days there has been lot of talk about end of India Story and how bad Indian Economy really is etc etc. These analyst / brokers / fund managers were the very same people who were recommending aggressive buying positions when Nifty was at 9000 levels in March 2015. All of them had a consensus view that Nifty will touch 12400 by the end of 2015, while we all know Nifty topped out at 9000 odd levels and began a correction and now here we are around 7500 Nifty and now these are the same guys who have become bearish and are giving out a target of 6800-6300 and some brokers are even talking of 4800 as targets for this down move to end. I sincerely request all my clients and regular readers of this website to stop listening to these brokers / fund managers / analyst, nothing personal against them but to follow anyone of these guys they have to make some sense. The talk off late has been absolutely filled with ——.
For the benefit of all the readers and clients of this website let me clearly state once again for matter of record that we do not see this bearish cycle to continue for long and although we are not putting out a exact number for the bottom but we are absolutely clear that Nifty will not sustain below 7500 both from short term perspective and medium term perspective as of now and we see Nifty heading towards 8800-9000. Does that mean we can not see 7300 or may be even 7200 in this panic? Answer is yes sure we could see that in the panic and volatility over the next few trading days. Will the volatility and lower prices sustain? answer is NO We do not see prices sustaining on the lower side and we see prices bouncing back sharply in fact extremely sharply from lower levels and head towards 8800-9000. So in a nut shell current panic will be the best time to buy for targets of 8800-9000 from a positional trading stand point. Does that mean the Indian Economy is ok ? Not it really is in a bad shape. Does it mean that the problems are going to be sorted out? No we don’t expect it to be sorted out. As per our analysis we see this move just as a trading rally and nothing else. Valuations will reach bubble territory and then post that move we see a massive collapse. We do not see the panic and collapse as of now. There are too many bullish astro cycles that are about to start that will take Nifty Futures into euphoria territory.
Just build positional trading longs on dips and keep adding high quality names in your portfolio. For those of you who invest in mutual funds buy front line MF’s for gains and initiate buying on dips below 7500 or around 7500 for targets of 8800-9000. Please keep in mind we will be getting out of these positions around 8800-9000 this is not a buy and hold strategy. It is clearly a trade in and out.
Buy Kesoram Industries, MSL, Sugar Stocks like Renuka Sugar, Bajaj Hindustan, EID Parry, NMDC these stocks will give good returns and all of them have a high degree of safety also so accumulate them on dips. Current volatility will not continue beyond 25th Jan 2016 (when mercury goes direct) Mercury goes direct in a earth sign of Capricorn 14 degrees so we should start seeing stability post 25th Jan 2016. Use the panic to buy and hold.
Good Trading To You!