Hadrien Mendonca has so far been proved right. In a technical report issued on 15th October 2013 (pdf), Hadrien confidently predicted that the “Nifty is on its way to the summit”.
At that time, the Nifty was at about 6000. Displaying remarkable prescience, Hadrien predicted that “the inverted head and shoulder projections indicate another minimum 550 point rally in the Nifty which means that Nifty would surpass the previous peak and make an all time high”.
Then, on 26th March 2014, when the Nifty surged to 6,580, Hadrien stated that the “Nifty has given a Multi-Year Ascending Triangle Breakout”. With an air of supreme confidence in his voice, he said “If the Ascending Triangle Breakout unfolds the way it should, then we expect a minimum upside potential for Nifty of around 620 points which suggests that Nifty would attempt at-least 7,180 in medium term”.
Today, when the Nifty effortlessly crossed 7180 and met all the targets, we know that we need to pay close attention to Hadrien Mendonca’s brilliant analysis.
In his latest report dated 12th May 2014 (pdf), Hadrien has claimed that the Bank Nifty has given a “Multi-year breakout” and that “Bank Nifty – New Bull Run Cometh“. Hadrien states that “the Bank Nifty has not only broken out but has continued its higher top higher bottom formation which further accentuates our bullish view on the index”.
The bottom-line of the analysis is that Hadrien expects a “minimum conservative target of 14,650 and second target of 15,500 on the Bank Nifty”. He also states that ICICI Bank and Axis Bank will lead the next up –move in Bank Nifty.
Now, speaking for myself, I have a huge chunk of HDFC Bank and IndusInd Bank in my portfolio. I also have a big chunk of Kotak PSU Bank ETF. I also have Bajaj Finance, enjoying pride of place in the portfolio. All four have performed quite well in the raging rally that we have seen and are solid stocks to keep in a long-term portfolio.
If you don’t have (or are underweight) banking/ NBFC stocks in your portfolio, you need to pay attention to Hadrien Mendonca’s technical analysis and consider the matter carefully.