Nifty Today’s Trend, Prediction, View, Target 31st Oct
Nifty today’s trend was that of consolidation. As per our analysis, prediction, view we remain of the view that buying on dips for higher targets is the best possible strategy as of now. There are many investors who have been calling me and asking me that has the bottom been made for the Indian stock market or there is still more downside for the Indian stock market? The answer to that question is fairly simple. First from an investors perspective do not look to catch the bottom because if you do you will end up missing some of the best opportunities that the Indian stock market is providing as of now. Take for instance the case of Icici Bank which we did buy around 295 Nse Cash levels (Regular readers of this website are well aware that we had initiated overweight in Icici Bank and mentioned the same here also). Now Icici Bank is up almost 18% from our buying price so even though the Nifty is hardly few hundred points away from its bottom yet the stock is much higher. So if I was to wait for the broader market to bottom then I would have missed the great opportunity in Icici Bank. The same story goes with PFC which we did buy at 73 because we did see deep value in the stock in addition to the deep value from a fundamental perspective we also did see great technical support area around the 73-70 area so our buying was supported by both fundamentals and technical factors and now is 25% higher from our buying price so what am I telling you to do is to look for individual stocks where deep value has emerged. Keep in mind that regardless of where the Indian stock market or the broader stock market and Nifty Futures and Bank Nifty Futures go regardless of that deep value stocks will give superb returns. The Indian stock market from a valuation safety stand point has not looked this good for a long time now and due to sheer earnings growth in many of these stocks the next few months and years investors will end up making good money in these set of deep value stocks. Please note that I am not suggesting for one minute that the entire market across the board is a screaming buy no I am not all I am saying is that in select pockets there is some deep value available and these set of stocks will make great money over the next few months. Let’s take another e.g. Kuantum Papers we have initiated at 540 and today is almost 17% higher than our buying price. We see excellent earnings growth in the counter and in addition to this there are many other fundamental factors which will see the stock soaring higher. The very fact that high earnings growth will be present will keep taking the counter higher and higher. Even from a technical analysis or chart perspective we see that it will keep making higher tops and higher bottoms in a nut shell I will not be surprised to see the stock at 1000+ levels in a matter of few months from now. So the bottom line is when you do see deep value go and buy and hold because that is where the big money is to be made in the coming months.
Good Trading To You!