Nifty has moved perfectly in line with our predictions. Many traders and investors were shocked when we said that at 16100 it is time to buy and our prediction was spot on and those who did follow our advice made superb money. Thanks to the market timing and realignment of our portfolio we generated 52% returns year to date.
What to expect in Nifty and broad markets going forward?
Now, going forward overall Nifty has resistance around 18300 area however there are some massive individual stock specific opportunities which will give us over 50% returns over the next few months. Make no mistake these companies are having all the qualities of a consistent compounders and are net Debt free, dividend paying, have healthy margins, strong market share, extremely attractive valuations. The combination of these factors make me believe that this new portfolio which we have initiated 2 days back should give us excellent returns over the next few months.
What sectors to avoid and where to focus?
Also, keep in mind going forward buying stocks which have margin pressures due to higher input raw material cost like in sectors of FMCG, Auto's will not be a great trade in the near term from today's prices. The rise in raw material costs and higher transportation cost cant be passed on to the consumer immediately and quickly and hence near term margin pressures will not make these stocks a great buy.
Our theme of inflation stocks, services stocks and defense stocks has done very well and now we have initiated new portfolios and will also initiate another fresh portfolio to capture the next round of sharp upside that I see coming in the markets. So broadly speaking Nifty will not do much and most index counters will not do much however there is a lot of money to be made in individual stocks in some specific sectors.