Nifty Today’s Trend, Prediction, View, Target 11th Oct
Nifty Futures today once again moved perfectly in line with our predictions, view. Over the past 2-3 trading days we were guiding and saying that we will be seeing a sharp pullback but that is not the point.From an investors perspective the markets gave us much awaited deep discounts and value buying opportunities that we have been waiting for quiet sometime now and we took that with both hands so some of the selected stocks that we had short listed where we were intending to buy reached deep value zone and hence we initiated delivery buying in those stocks. We expect anywhere from 70-150% returns in those stocks over the next few months but the more important point than returns is that in those select stocks the rock bottom has been hit and there is literally negligible downside in those stocks. As of today those set of stocks are already up by around 10-20% from our entry price levels anyways the broader point I am trying to communicate is that in select pockets the mayhem has lead to creating deep pockets of value which was not present for a long time and when you see value inventors should go long in them. Please keep in mind that I am not suggesting for one minute that there could not be volatility sure there could be volatility but from a few months forward perspective we do not see any significant risk in buying those select stocks for delivery and holding on as much of those stocks have all the ingredients of a massive wealth creator which are superb management, excellent earnings visibility, low or no debt and superb valuation entry point . Once again please keep in mind I am not suggesting blanket buying across the board this is specific to some select counters where deep value has emerged due to the sharp decline in prices over the past few days and weeks.
Now from a technical analysis standpoint our view, prediction remains that Nifty is oversold and we will see sharp bounce backs towards retracement targets but keep in mind that if certain conditions are fulfilled we could also end up seeing that this converts itself into a new bullish trend so keep that in mind. If you are planning on short selling then do so only at appropriate levels and proper zones with proper risk management because as I have said that there is a possibility of this move translating into a new trend as of now we do not have confirmation for that but looking at the broader counts I can not deny the same so be very careful and trade. Please use appropriate risk managenent and then only trade. Please do not over trade and always keep your risk in check and trade. Markets could be very volatile in the coming days with unexpected outcomes so be ready for that.
Good Trading To You!