In this paper, we are proposing a simple lossless prediction based coding method for videos. Our algorithm works on 3 modes of operations and selection of the mode is done on a pixel-by-pixel basis. Selection of the mode is based on intensity variation of pixels in temporal direction. If there is a large intensity value variation, intraframe prediction mode is chosen. Otherwise interframe prediction mode is activated. Intraframe prediction uses Gradient Adaptive Predictor  whereas Interframe prediction switches between two algorithms. In interframe case, one prediction mode takes care of local characteristics of pixels of current and motion compensated frames while the other incorporates global characteristics. The proposed method is computationally very simple and results into better performance as compared to competitive but complex methods reported in literature. © 2012 IEEE.