Nifty Prediction 24th Feb 20
Many of you have been calling me and asking me about where Nifty is heading in the near term ?
So here is the answer regular readers of this website are well aware that currently Mercury is retrograde and whenever Mercury has gone retrograde especially at the current passage degrees we have always seen sharp volatility so one day markets will go higher and end at the days high and next day we will see sudden sharp gap down only to close back in the green again and hence we have been advocating a buy in panic and sell in euphoria strategy and that has worked well till now. Also, we have been predicting that booking profits at regular intervals is the thing to do because of sheer volatility and sudden moves that we will keep witnessing till the first week of march. So it is important to keep this in mind while you are taking any positions. Once again we are predicting that sell the euphoria and buy the panic and keep taking regular profits this is perhaps the only strategy that will end up making money over the next two weeks of Mercury retrograde.
So let us take the e.g. of Silver for now in which from a longer term perspective we remain very bullish but since currently mercury is retrograde and we are seeing currently some sharp upside in silver it will be prudent to book profits partially and then buy again in panic on the lower side in the coming few days. Keep in mind I am not suggesting for one minute that silver should be short sold all I am saying is in euphoria which can be seen on the screen for now booking part profits is a good idea and then if we get silver lower in the next few trading days which we should then reentering the same position will be a good strategy as per my analysis.
The same principle is true even for Nifty so for e.g. Nifty broke the support area of 11970 spot level and went lower almost to 11900 and then again staged a come come back so there was panic and a false breakdown and then again that level was taken out from the downside so this is exactly what we are saying that false breakdowns of supports and resistances could be seen which in turn could suggest a panic but exactly buying into that panic at appropriate areas will make the money and same goes for the euphoria on the higher side. So what is the easy way out from a trading perspective over the next 2 weeks we would suggest to look at individual counters which are in strong up trends or down trend and on pullbacks (which would actually be the false break out or break down level) take trades in the direction of the main trend. So keep a watch on stocks like Divis labs or Bajaj fin or