Nifty Today’s Trend, Prediction, View, Target 12th Oct
Nifty had a volatile day of trade today. Nifty first opened lower following extremely weak global cues and then posted a smart recovery and once again dropped towards the end of the trading day. Rupee plunged to an intraday low to almost 75 levels but eventually recovered and moved to a day high of 73.80 and then again gave back some of the gains. Our view, prediction on the rupee remains that near term depreciation for this round is over done and we do not feel that there is much to go on the upside for the time being later on there could be some more depreciation but in the very near term we do not feel that the rupee has much room on the depreciation side and our target in the near term is around 71-72 for the rupee.
Crude Oil also has moved perfectly in line with our view, prediction and reversed from the target price of around 86. We had mentioned that although longer term crude oil could move higher but just like the rupee near term the rise in the crude oil prices is done and we could see a move towards retracement targets.
There were two divergent themes playing out today. Bank Nifty which had previously made of 24240 spot Bank Nifty levels Bank Nifty’s today’s low was significantly higher than that of Nifty. Nifty had made a low of 10198 and that was breached intraday but Bank nifty’s low was protected indicating that bank Nifty could start outperforming the Nifty and even leading the Nifty in case of a new trend begins so keep that in mind. Stocks like Icici Bank which we have bought at 295 remain stable despite the panic in the broader markets but even more importantly the point to keep in mind is that even during todays fall all the stocks that we have recommended remained higher to flat in fact one of the stocks recommended by us was up by 5% even today so the point is that though the index may be showing you a dooms day situation but the fall or rather collapse has created excellent opportunities and value pockets which must be used to pick stocks for delivery and build portfolio. Please keep in mind that I am not suggesting blanket buying in the markets all I am suggesting is that there are certain select stocks and pockets which have corrected significantly from the highs and have reached deep value zones from an investing perspective so buying when deep value is present has always made great money and that must be done.
From a trading perspective we did buy Bank Nifty today morning around opening and Bank Nifty did give us a great intraday rally but as we have pointed out above that it could happen that Bank Nifty could end up leading the new trend so be very alert if Bank Nifty starts moving higher it could surprise on the upside and Icici Bank which is one of our delivery and short term trade buys could end up leading the bank Nifty higher. We expect good returns from Icici Bank. As per our view, prediction we do not expect much downside in the near term. Value buying must be done in select stocks for higher targets.
Good Trading To You!