Investors May Have Good Profits before Diwali

Investors may have good profits before Diwali, know how the stock market moves next week, experts are telling.

The stock market participants made their bets quite well this time but could not go beyond CNI’s estimate. CNI has been consistently predicting correct estimates since 2008.

When the Nifty had slipped to 2,700. Before the correction due to this epidemic, we had expected correction at the level of 12,400. However, it will fall to 7,500, which we did not even think of in the dream.

Now it is also a matter of fact that no one thought that Covid-19 would shock us like this.

However, at the same time it is true that we had partially but profit-booking at the level of 12,400. We started aggressively picking up from the 7,500 mark, when PE was down to 12.34.

This was only slightly higher than PE (11) of 1991. The 1991 PE was at a three-decade low. We set a target of 10,000 points first and then set a target of 12,400. The Nifty closed at 12,263 points yesterday, while the market in Singapore closed at 12,364 points.

We explained in detail the ups and downs for the first time and it is now a thing of the past. Followers would like to know what next? Will the ongoing boom in the stock market stop.

Will we see big correction once again? Is the valuation too high? Will the mid-cap and small-cap ever perform as the current rally in Nifty comes from just 12 stocks.

To deal with all these issues, you have to understand what are the aspects which are setting the direction of the market.

Win or lose the trump in the US presidential election; The market will see an uptick and our guess turns out to be correct. The market saw a very good growth.

This is the reason why many investors have suffered a lot due to fear of the US election, while our followers benefited from the boom.

We believe the market will touch a new record high of 12,450 or 12,500 from Diwali and thereafter the possibility of some fall may not be ignored. Investors may have good profits before Diwali.

The reason for this is that short-term enthusiasm is returning. The fast race is yet to begin. In such a situation, if you understand the theme of the market and invest, then the creation of property is still possible.

We had earlier said that the Nifty can reach the level of 23,400 in the next three-four years. In such a situation, this race will continue.

However, there may be some correction at the level of 12,500 or 12,800 or 13,000 but it will not be more than 11 percent. This means that it will not fall below 11,300 points or 11,100 points.

Now here we talk about valuations which are still quite high. Although Nifty PE is showing at 33 but according to us it is around 25-25.5. In this way the valuation is still likely to increase.