Share Market Tips: There is no change in our Nifty target of 15,900 in the next 60 days. The Nifty again remained in the range of 15000 to 14300 this week. 15000 is a major psychological barrier, while 14000 is the largest psychological support. At this time, why are the buyers trying to attack the market, we must know.
The market is worried about the second wave of the Coronavirus epidemic. Every other analyst is busy taking stock of the ground reality. They believe that consumption will be affected in a big way. Especially in sectors like auto, cement, steel, textiles, banking, and NBFCs. There is talk of a shortage of borrowers for banks and NBFCs. Regarding the cement, steel, and auto sectors, they think that dealers will not pick up delivery and retail consumption will stop. They also believe that if a national lockdown is imposed, the situation will worsen.
The market knows it all. In the last 45 days, the market has fallen from 15,000 levels 9 times to 14300. All this is true, yet strong buying comes at a low level and the Nifty reaches 15,000. Even this will definitely happen next week.
It reminds us of March 2020 and April 2020, where we saw the Nifty falling to 7500 and thereafter huge volatility. The same breed of analysts was shocked and trying to shorten the market and you all know what happened. This time too, nothing is different except the conviction of conviction. It is being said that the infection is widespread, as it has crossed 2 lakh cases per day. There is a lack of oxygen, beds and critical injections. This broadly implies that there is no other option but lockdown.
Share Market Tips
We want to analyze these issues in some other way. There is no end to being pessimistic. Please note that the last time the corona virus was under control, because only Prime Minister Narendra Modi had taken all the decisions, which were timely. At least now we can realize their efforts, when states are repeatedly failing to get control of this epidemic. Chhattisgarh allowed 60 to 70 thousand people to watch Seniors T20, knowing that it could spread the infection. Gujarat did the same in Test matches as well as Tamil Nadu. Then came elections in 5 states followed by Kumbh. Now please note that when more than 50 persons are not allowed in one marriage, the transition from the gathering of millions of people to the events mentioned above was bound to spread.
Share Market Tips Number: 1
All states that have imposed restrictions on the public should also follow the rules themselves if their purpose is not to spread the infection. Which state has already expanded the facilities by realizing this expansion of transition? The answer is – no one really. Controlling the distribution and recidivism of private stalwarts, ICU beds can be extremely foolish and the media gets a chance to air this balloon. If Astral would have charged a higher price or sold recidivism at a private firm profit, it would have been available to more people due to the larger network. Hospitals with government control said they would make it available only to patients and many are struggling for beds, leading to a rapid increase in mortality. However, this is not our subject and you can disagree with our views.
Share Market Tips Number: 2
When we compare the current round of short selling to the year 2020, we see an opportunity similar to the year 2020. We have to see the Nifty moving very fast to 15900 and 16600 and short covering will be difficult. The reason behind our belief is the extremely strong position in the March quarter. In March 2021, the corona epidemic was not in critical condition. The corona outbreak was seen in April and no complete lockdown has been implemented so far. People believe it will come after the election results on 2 May, although we do not believe it because of our view on vaccination. In practice, 300 million people will not need the vaccine and by the end of July, the country will be close to vaccinating 100 million people. Shorts at that time will not be able to survive.
Share Market Tips Number: 3
There are some smart players who are keeping the market volatile and taking positions. They certainly know that even if a lockdown occurs, the market will not know its effects until July 2021. By that time, the Nifty will cross 16000 and no one will dare to keep the shorts open till the end of July. We have seen Tata Steel grow 25 percent in just 45 days. This will happen with many stocks in the steel, cement, banking, NBFC, and auto sector. Another example is Tata Motors. It announced the closure of the Pune plant and the stock rose from 285 to 315.
Share Market Tips Number: 4
Also keep in mind that when you are max long, the value is long, but if you are short, the answer is always infinite. You should know that the government is the biggest consumer in steel and cement. They can do more qi to lift consumption. Large projects will not be affected. Big players always have 30 to 60 days of inventory and so if there are small lockdowns, it will not affect the economy. Please note that all the forecasts for FY 2021 made by the so-called experts had failed miserably. We do not see any major impact on FY2022 either.
Share Market Tips Number: 5
Now liquidity is the best thing because of Qi. If the economy gets affected, it will grow more, so the market will also grow. Note that the steel companies raised the prices by Rs 1500 to 4000 per tonne when they came to know that the Kovid infection is spreading. In the year 2020, we saw complete disruption in April-May, yet the Nifty increased from 7500 to 15000. There is no complete lockdown now. The Nifty may not go up by 100 per cent, but we will definitely see an increase of 15 per cent in the next few months.
Share Market Tips Number: 6
Everyone knows the market. The Nifty should have fallen to 12500 at this time, which is expected by the bears, but in fact the Nifty has gone above the Nimm level every time. Once we cross 15000, a new round will start and Byers will be forced to hide somewhere.
The sectors that should benefit from the lockdown are entertainment sectors such as zee, data companies like Bharti and jio, and the pharma sector. TCs, Infosys, and tinplate react to good results, which means that the market works only on demand and supply. After seeing a large amount of short selling, we only believe in the Thumb Rule decline in the bull market.