As i wrote on the 12th of September
Dax was 5166------------Today 27th OCT : 6377 -----20% PLUS MOVE
CAC was 2894------------Today 27th OCT : 3368------15% odd MOVE
DOW was 11105-----------Today 27th OCT : 12208-----10% odd Move
Nifty 4940 expected to open around 5400 as per SGX..
Wow in close to a month On the move.. BANG ON.. so have i made money???? Not yet
Im buying only UGLY STOCKS----Infra --Power...Realestate
And they have not moved.
Today a lot of shortcovering gonna take place in next 10 minutes. Mainly financials and infrastructure.
If you are heavy on financials infra or realestate. 5400 level is an amazing hedge against the broader market. 5900 is gonna be a real strong resistance till RBI reverses its stand on interest rates.
Look at individual stocks. Index on Nifty is really deceptive.
5400-5900 is just a 10% move for index
Fair value of many stocks are like 50-100% on a relative basis.
Once its setlles above 5400 im sure one shall see a20-30% minimum upmove across the board.
perfect time to hedge as if A Moves---10% and B falls 10% the differential is 20%
A= index
B= stock
Its UGLY TIMES UGLY.
