In the last two articles, we had mentioned that the market had made bottom at 10600 levels and it was a perfect time to buy high-calibre stocks for long term duration. Also, we had mentioned that the government was now getting active and may take expected positive steps. The government did as was expected. As a result, the market is now trading at 11500 and the government has announced big bang corporate tax cut recently. It is the biggest economic reforms since the 90s and it will have positive implications in the months to come.
Talking of the October series, we are not expecting the market to cross its life highs unless nifty cross the levels of 11700. We expect Nifty to consolidate between the range of 11400-11700, for a few weeks and after that, if global events are conducive the market will move towards its life highs. So October month should be a month of consolidation with positive bias.
It is visible that nifty has clear support at 11400 and resistance at 11700 level and nifty will consolidate between that range only. Only another good reform or big positive global news can provide a good reason for nifty to breaks level of 11700 levels. And after that only we are expecting Nifty to reach life high of 12100 levels.
Similarly for banknifty range is 29400-30800. Once banknifty breaks the level of 30800, it can touch life high but till then we are expecting banknifty range of 29400-30800.
So the conclusion is that nifty bottom has been made at 10600. For the next few weeks, nifty will range between 11400-11700. Also in our exclusive report ‘7 Stocks That Can Make You Rich’, we had recommended seven wealth-creating stocks which are already up by a considerable percentage. Coincidently all those stocks will be the biggest beneficiary of the corporate tax cut and will continue to perform well going ahead. Below are the few more stocks to keep on buying radar for medium to long term. Also, it is recommended that after the recent run-up, one should buy the stocks on minor correction or consolidation only.
