Nifty Prediction Nifty moved perfectly in line with our prediction. Last week we had mentioned that the current downtrend now will be ending and a pullback rally will begin and that is exactly what has happened so although longer-term trend remains down near term bottom is in place and now we can see choppy movements in a broader trading range in the coming days.
Many of you have been asking me one question and that is has the final bottom been made for the Nifty? The first part of the answer is no the final bottom for the Nifty has not been made and there is significant downside pending as per my calculations. The current bottom around 10600 levels is an interim bottom as per my calculations and eventually we will see much more lower levels below 10600 but for the time being as we have been predicting we will see a retracement or rather a pullback rally in the markets so keep in mind that the current rally (the one which has started from 10600 odd levels) is a pullback rally where the pullback rally ends is a different question altogether however whatever you want to call it eventually the current bottom of 10600 will be breached after a few weeks of stability in the markets. So in the near term zigzag movements could be seen in the markets but overall from a short term perspective, it will be a buy on dips or panic and book profit on euphoria trade. We do not see a buy and hold strategy for now making great money. Also, from an investors perspective many of you are asking me when and what to buy for longer-term and the answer to that is for the time being forget the longer-term portfolio buying because whatever you buy good stock or bad stock or high-quality stock we are still going to see that counter moving lower and hence you will get much better prices to buy them at. I know that some of you are saying that the stock has fallen 50% from the top and price correction is over in the stock but the point is the pain in the economy has not stopped and the global backdrop is going to be more challenging than the past few months in the coming days so we will see some currency war playing out shortly and that will create a lot of pressure on the markets so keep in mind that though there is some selective value our advice to investors is to wait for major bottom to be formed and that will happen after few months so don’t be in a hurry to build your portfolio sit on as much cash as possible.
Nifty Prediction Near term we will see rallies which are part of a retracement rally of the entire fall from 12100-10600 levels but eventually, the current bottom will give way for lower levels. Those who are stuck in positions must get out on every rise as prices come to their cost. A lot of zigzag rallies will be seen between 11400-10600 from a near term perspective.
Good trading to you!