Nifty Today’s Trend, Prediction, View, Target 25th Oct
Nifty today’s trend was very volatile. Early in the morning Nifty opened higher on good global cues and crude oil prices falling internationally but then Nifty once gain dipped and went back into the red and towards the end of trade once again recovered and moved higher to close the day in the green up by almost 80 points.
As per my analysis, prediction, view we remain of the view that Nifty trend will remain buy on dips for the next few days and it will be important to see if Nifty trend is a retracement target move or it will become and convert into a fresh trend. In case of a fresh trend we could see some amazing higher targets for the Nifty but in the very near term we should be focusing only on managing the volatility because we could still see some more volatility over the next few trading days. We see Nifty retracement targets of atleast —- and Bank Nifty will at least see targets of —- even if this is actually a part of a much more bigger bearish cycle which I do not see in the immediate term, medium to longer term that is possible but in the very near term we remain of the view that both Nifty and Bank Nifty near term selling is overdone but as we have been saying that this actually does not matter because in certain select pockets there is deep value which has emerged and in an environment where India’s macro’s are improving (Crude Oil is falling in line with my view and as predicted, Rupee is stable and appreciating again inline with my view and prediction and Bond yields are falling and moving towards my targets) so a combination of all these factors is good and supportive of the earnings growth environment though I am not expecting significantly higher earnings growth from most of the companies but yes the picture which analyst are showing and estimating as of today the reality will be well above that so most of the fear in terms of earnings downgrades is in the price and also the price has discounted lower earnings and is now in deep value zone.
Buy stocks where you see deep value and hold there is a lot of value available in the markets though not as good as it was a few days back. The deep value stocks are getting bought into very quickly like some of our stocks are now up by almost 18-20% from our buying zones. This is when Nifty and Bank Nifty are there almost near the bottom zones so the idea and trade should be to buy deep value and high quality names.
Good Trading To You!