Nifty Prediction 14th Feb 20
Many of you have been asking me for the past few days why is Nifty moving higher despite bad economic news ? So first we had lower GDP forecast then we had a budget which failed to stimulate demand and now even the inflation numbers have been higher for the past 2 prints and note worthy point is that it is well above the comfort or guided inflation trajectory of the RBI so in spite of all this why is Nifty not reacting and moving lower? Some have also asked me that GDP has now fallen from 8% to 4.5% and the next print we estimate will be around 4.1% and yet Nifty does not seem to move lower. In fact all stats shows that despite negative news buying into the panic has made money till now but the important question is will that continue?
Well to be very candid with you, I too was baffled initially but let us look at this purely analytically so since most of us are traders we must keep this news flow at the back of our minds but it is important to focus on the prevailing trend which for now is up despite all the negative news flow. Some may assign this to the huge flow of money that is coming in from mutual funds or some may assign this to FII money flow be that as it may for traders all that will matter and should matter is just the trend so the trend for now remains up and while everyone is short selling the Nifty looking at all the negative news flow we have now created yet another classical bear trap so we could see sharp short covering in the next few days but coming back to the important point the manner in which Nifty is being stage managed we don’t think Nifty should be correlated to the economy any more. So if you are a trader just follow the trend but life for investors gets tricky so where should investors park money. We have got a list of high quality stocks that will make money regardless of where the Nifty goes so let Nifty move lower does not matter these set of business will continue to grow and eventually make good money. We will discuss these set of top 25 stocks with our clients but the point is that these stocks will do well regardless of where Nifty goes and in order to make money for this year we will have to buy these stocks in panic whenever we get them and then book profits higher we cant do a buy and hold even in these stocks.
We will discuss more on this in our next update. Nifty Prediction Trend is up buy in dips and keep booking profits at higher end.
Good trading to you!