Nifty Prediction Jan 19
Nifty Futures was seen consolidating today after a sharp rise yesterday. As per my trend analysis, view, prediction I do not see any major longer term bullish move currently. Short term there could be some move taking place however it must be kept in mind that from a longer term perspective equities as an asset class does not look attractive at current levels. Please keep in mind there will be some handful of stocks that will outperform the entire market and the entire market can’t be painted with the same brush. These are set of stocks where there is deep value because these stocks have fallen very sharply, their earnings have more or less bottomed and they are seeing uptick in their top line numbers hence they can be accumulated in panic however when we leave these select pockets out and take a broader look at the entire universe of stocks then we do not see much upside in portfolios. So let me give you an e.g. take for instance our Multibagger call Maha Scooters this stock is making lifetime highs despite Nifty being much lower from the top there are reasons for that happening but that does not mean that everything in the market will keep making life highs or move higher or for that matter make much returns in the market.
This is what we told our customers on 14th Jan 19
Nifty has been consolidating between 10600-10900 for the past few days after we have booked profits in our short positions. Looking at the entire structure and analysis I see a lower top being formed between. I do not see Nifty starting to fall directly from here. As per my prediction, view I see Nifty will be moving higher once again around the zone of —— broadly with few minor variations by the date of around —- Jan 19 and then creating a major top from where we see Nifty starting a sharp fall or rather resuming a sharp fall taking Nifty well below the current low of around ——- level.
Those holding portfolios and doing SIP’s or any form of equity investment must use the final up move to book profits and get on as much cash as possible as we do not see Nifty or most portfolios making any money. The slowdown in earnings will be extremely visible in the coming few quarters and that will make stocks look very expensive in the near term not to mention the uncertainty of elections and headwinds of Crude Oil moving higher and dollar index also moving higher which in turn will take rupee well above 75.
We may choose to wait for the level of —– to short sell, if we do see a clear low risk set up we may do some small trade for higher side targets but keep in mind that this move will actually be a lower top so use the rise to get on as much cash as possible.
Good Trading To You!