Nifty Today’s Trend, Prediction, View, Target 23rd Oct
Nifty opened higher today based on good global cues from Asia and especially the Chinese markets but towards the end of day Nifty Futures once again slipped and moved into the red and managed to close the day well of the highs. The sentiment on the street is totally bearish. Every person is talking about targets of 9500 some even say targets of 9000 though longer term they are possible but in the near term as per our view, prediction we feel that selling is overdone in the immediate near term and though there could be some more volatility in the next few days (not that I am expecting much but just a little more intraday volatility could take place)
The bigger opportunity that I have been communicating is that to buy high value or deep value stocks which were not available since sometime thanks to the crash in the broader markets we now have deep value available and as investors that deep value should be bought. E.g. Icici Bank worst seems to be over we bought the stock at 295 and today booked at 327-328 area partially so even though the broader markets have moved lower there are some deep value opportunities which will end up making excellent money in the longer term. There are many other stocks which have taken it on the chin and are down almost 70-90% from the recent highs but that’s not the point there is value and deep value in some of the stocks and as investors you will get such value only when there are problems so let us take another e.g. there is an auto company whose stock has been battered due to some sales issues but the stock has reached deep value now many argue saying that because of xyz problem stock is down but had it not been for these problems the stock would not have ended up correcting so much so just because of near term issues the stock has fallen sharply. The key is to look for good value, excellent management and decent to good earnings growth potential if these parameters are available then eventually the stock has turned out to be a great value buy. (Some of the top and well known investors of Dalal street have been buying into some of these names for the past 2-3 days now) but be that as it may the bottom line is that there is deep value in some select pockets go and buy these deep value stocks and hold them for longer term gains just because there are near term headwinds you are getting these stocks at such hefty discounts had it not been for the NBFC issues or trade war problems or the currency problem you would have not been able to buy these great names at such deep value.
From a traders perspective we see outperformance in Banking sector and as we have mentioned we are long in Icici Bank at 295 booked part today at 327-328 which we feel will lead the Bank Nifty higher and we expect Banking sector to lead the rally and Nifty Futures higher again I am saying pullback rally or new trend that remains to be seen but overall we are not of the view that we will see lower targets of 9500 directly, our view, prediction remains we will see sharp pullback trend in the Nifty and Bank Nifty and atleast reach appropriate retracement targets even if we assume that this is actually the start of a larger fall.
Good Trading To You!