Nifty Prediction Nifty is heading for 23856 as predicted by 2024. Buy high quality names in portfolio and hold for longer term for min 4X+ targets by 2024
Well, many of you called me after the last update and said near term there are so many problems and yet you are talking about a major bullish cycle and I am today just going to repeat what I told many of you. Firstly I am a big follower of astro cycles because they will guide us well in advance as what to expect in a particular year for the markets and as per astro cycles we were predicting that we will see much lower prices in terms of valuations to enter the market and that is exactly what has happened for now. Be that as it may the point is that from 2021 onward’s and especially after 15th Aug 2021 this holds true even more for Indian stock markets is that there are multiple bullish cycles which are over lapping each other and I do not know the exact reason as to what news flow or circumstances will drive the markets higher at that point in time but I do know that all major cycles and minor cycles are overlapping post 15th Aug 2021 and they will propel Indian markets towards the sky or I may say outer space. (this prediction coincidentally is also tallying with Elliot wave counts and Gann wave counts as well as creation and destruction cycle theory) so there is overwhelming evidence from astrological cycles, Elliot wave counts as well as Gann wave counts. So keeping this background picture in mind now we have to see from a historical perspective when has been the best times to buy into stock markets? Or rather let us rephrase the question when has investing been the most fruitful and rewarding and in what set of stocks?
From an investment stand point there is highest probability for investors to make money when investors buy high quality names at cheaper than average valuations and hold for a duration of 5 years plus. So if we just go back in history and see the similar criteria was meet in 2010 and if you had bought let us say a Nestle India at that point in time investor would have made a fortune so I do not see the coming time any different than that of the past few years till the product has no competition and is virtually in a monopoly market the end result will be the same and that is free cash flow = higher eps = higher stock price. It is as simple as that. Now, some of you may argue that Nestle India was a unique opportunity and there are no such other opportunities available but I am sorry to disappoint you there are many such stocks where the growth for the next few years will continue unabated let me tell you yet another story that I was bullish on but now I am super bullish on even more than ever before and that stock is DMART. Dmart has one of the most unique business models while people today are talking about slow down I have actually seen during this pandemic that people were and are going to dmart at 3 am in the night to buy grocery (pubic is saying mandi hai and yet this guy is running his store almost 24 hours) and people are standing in lines outside his store to buy food and this has not been the story for last few months this has been the case for as long as I can remember.
Now, the important point to keep in mind is that this guy Dmart will keep gaining market share from the competition and that is the kirana store (who cant really compete with dmart) because of his sheer size and scale and purchasing power and efficiency so the net result of this combination is every year his customers base will keep increasing, his revenues will keep increasing and that would mean the golden words which is free cash flow and as you would have understood by now free cash flow = higher eps = higher stock price. Essentially all stocks that have been wealth creators will keep doing this year after year for many years to come and I do not see this changing. Now, some of you may argue that there are others (organised players) may enter the market and try to disrupt this story but I do not feel so because the next stage of Dmart’s growth which will come will be even more disruptive than before because they are now diversifying into a unique model. Online + Large stores + small stores + quick home delivery and all these 4 modes while ensuring that they provide the most value for money for their products and are cheapest across categories. So to replicate this model Online + Large stores + small stores + quick home delivery+ Value for money + Cheapest across categories is not an easy task and hence essentially I see Dmart becoming nothing other than India’s wallmart in the years to come. (keep in mind this is a recession proof business more or less based on economic outlook end customer net bill values might vary a bit but overall growth in customer base will take care of that) so in a nutshell this is the opportunity in Dmart risk free + recession proof and clear growth in the years to come and there are many such other names which form our portfolio so in the bullish cycle these stocks will do even more better and as we have said in the past in bad environments they fall lesser and good environments they move up faster so this is not the time frankly to bother where Nifty goes in the next few days. It is a time to build solid portfolio with such solid stocks and hold for next few years till 2024. Do not bother where Nifty goes in next few months frankly it wont matter.