There is no down-trend in the market for the short-term | Know more

Nifty 50: 10.693.70
Sensex: 35,673.25
Above are the levels that Nifty 50 and Sensex are currently trading at, after making their 3 month maximum lows in October. Nifty50 made 10,004.55 on October 26th and Sensex 26,992.48 on October 5th respectively. Since from then the charts of Nifty50 and Sensex are diversified little-bit in their growth rate as well as Simple Moving Averages as per my analytics. So are the directions.


If we look at the growth percentages, Nifty50 has made just 6% to 7% growth from the October’s low of 10,004.55. Where as Sensex has gained from 33,349.31 to 36,241.0 on 3rd December. A gain of 8%. Differed by 1%. That’s not considerable, but the future technical pattern is going to differ a bit more.
One can expect the consolidation phase in both the indices till the 20th December’18. After which growth will be seen towards end of first week of January’19. Fast growth is expecting from then onwards driven by the Q3 results. This may drive both the indices fast to test their maximum possible highs towards the end of February’19. Then expecting the correction. Nifty stats are much bullish than the Sensex.
But how much and until when will be discussed in my next post. Not possible to view now itself.
Until then Happy Investing & Trading to all.

Positional | 02.12.2018

Currently trading at Rs.297.80 on BSE, and Rs.298.55 on NSE as per the Friday’s closing price, JB Chemicals has the potential to give you 30% -32% return in short-tem.


Expected time frame would be around 1 month. Can buy on Monday and / Tuesday in the open session. Buy and stay invested for 1 month. Book profit after achieving the target.

As a Free Member one will receive the Buy and Sell calls not so frequently. But, Premium Channel Calls are very regular and your portfolio will end-up with heavy gains. Try to become a Premium Member on this site and gain like never before.

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Rattan Power | What’s the Technicals as well as Financials are Suggesting

Recommended long back ago, had so many exit calls, expecting the current down-trend.
Still, if anybody are holding Rattan Power, I hope, might have averaged out at the previous low levels.


For those, who have bought earlier, and are planning to hold for long, I think it’s better time to exit today and tomorrow to hold back either the profit /at-least the basic capital invested.

[su_note note_color=”#e9e9e9" text_color=”#414141"]This is not from the ‘Bull Stock Recommendations‘.[/su[/su_note]For your constant and continuous profits, become a Premium Member on this site.

Bull calls, just makes you bag-up the returns. Make use of this opportunity, before the charges go up!

Post your stock related queries in the forum. [su_[su_button url=”https://investockist.com/stock-investment-discussion-forum/” background=”#E9E9E9" color=”#000000"]M[/su_but[/su_button]

FII Selling Presure May Drag The Market More Down-Side | Don’t Sell Off | Know More

As in the news, the reason for fall is the FII selling pressure due to FED rate hike again. It’s true upto certain extent. But, if one can go through the numbers, the impact due to that is very minimum. For example, from 1st October the gross sales by FIIs is Rs. 119,007.45 (Cr) where as Gross Purchase is Rs. 93,822.71 (Cr). The difference is Rs. -25,184.74 (Cr). Where as the DII Gross Purchase has increased to Rs. 86,569.01 (Cr) in comparison with Gross Sales of Rs. 65,549.97. Which is positive sign of Rs. 21,019.04 (Cr). The difference between FII and DII activity makes up just (-25,184.74+21,019.04) Rs. -4,165.7 Cr.


The current down trend may hardly continue till the first week-end of November. Correction is common in any Index. Can’t blame any single constituent that’s responsible. We are aware that there are many factors that will drive the market in either directions. By the time Nifty was traded at 11,760 points, many Big Caps have given multiple returns. Few Midcaps too have given big returns and others mid-level. Only Small Cap portfolios have been beaten down by almost 50% loss or even more.

Other factors, if we consider are just booking the profits occasionally on rise, due to the fear of fall before elections. Big individual investors started to book profits. Small retail investors also contribute to the small extent.

The quantity bringing in by the DII is more than the net selling quantity. As of 26th October’2018, the net the DII are buying more than the amount that of net FII selling (-1,356.66 & 1,875.89)

It’s true that the investors who were willing to go long are in big loss. There is no way but holding the portfolios. I suggest to hold and exit as soon as your buy price is reached. because the correction of Indian Indices may extend beyond 2019.
Down side expectation for Nifty 50 would be around 9650. Sensex around 32000.
Short-term Nifty Small Cap correction is almost over. Gains will start from November second week. Don’t decide to go long. Trade off at the resistance levels.

The above targets may vary slightly. Nifty has the chances of slipping down to 9500 levels.

For guidance, post your queries in the ‘Stock Investment Discussion Forum‘. Will be answered asap.

Big Cap Strategy

There are two possibilities.

In the first case, if there is a push back from the current low of 33, 291.58 (Sensex), Market will test this level again to move up. The upside will be somewhere around 38,000.

In the Second case, market fall will continue with slight push ups, till the resistance level of (29500-30000) and Nifty 50 (8900).

Markets are very sensitive. Even small contributing factors will drive them in different direction. So are the targets.

Anyways, our economy is continually striving to become self sustained. I’m expecting the previous rally in the indian indices from June’19 itself. So, better to hold your investments. Don’t sell off in hurry.

For day to day market analytics, follow the Market Analytics Forum to take the more informed decisions.

Mid Cap & Small Cap Strategy

Simple. Neither sell or nor buy. Just hold. Expecting reversal back from where the long-term Big Cap correction starts. If not in the case of few much fallen small caps, will give you the chance to trade off. So hold is suggested.

All assumptions are made, purely based on ‘Technical Analysis’ as well as the prevailing ‘Socio-Economic’ conditions that may directly or  indirectly affect all the businesses in general. Please do, your own analysis before investing. I’m not at all responsible for your future investment decisions.

-Hameeda Ghori

 

Why You Should Not Sell SmallCaps Now

Today only SmallCap Index has corrected. Nifty 50 and Sensex are on recovery mode. If we have a look at the past, Smallcap recovery always falls behind the major indices NIFTY & Sensex. Hence, within a day or two small cap index will also recover. Time to show your patience.


Here a much fallen stock with sure-shot recovery.

Pioneer Investment Corporation

Currently Trading at Rs.20, the stock’s target is very high. It might be around 150-200 levels. Which will give you 700% return in the coming 5-6 months period.

Add-on drops is recommended.

Others will be updated.

Portfolio Managemt Strategies | Types | And A Comparision

Whether it is a mutual fund or personal investment.  At last portfolio is a portfolio. No difference. Without strategic portfolio management, it’s very difficult to achieve the target. Investment into different asset classes like equity, debt, gold and cash will give the returns of different percentages and at different time periods. So, there is a need to manage, the balance between different asset classes. That’ where a strategic portfolio management plays a vital role.


STRATEGIES

Active Strategy

An active portfolio management strategy focuses on outperforming the related specific benchmark index that comprises of the assets in the portfolio. Either an individual investor /a broker /a mutual fund, the strategy remains same. Just outperforming the specific related Benchmark Index.

Suppose you might have come across the news that, BSE Midcap Index has fallen by 12% since the beginning of 2018. And’ all the Midcap Mutual Fund Schemes have fell lower than their respective benchmarks. But, Axis Midcap Scheme shown positive return of 0.74% from Jan’18 to June’18.

How it Works

Let’s better to explain with an example.

An investor  Mr. Gentleman aged 40 years has invested his savings of Rs. 10,00,000 in different asset classes as follows.

 

Initial

Asset Allocation

Amount Active

Asset Allocation

Amount
Equity

Debt

Gold

Cash

4,00,000

2,00,000

3,00,000

1,00,000

Equity

Debt

Gold

Cash

2,50,000

3,50,000

3,50,000

50,000

After allocating the total amount to gain under different classes, there was a signal of equity market down-trend. Then, to save his corpus, he planned to reduce the amount of equity exposure. So, he reduced the equity amount from 4  lakh rupees (40%) to 2.5 lakhs (25%). And, to safeguard his return, he transferred that amount to debt and Gold.

Here, the investor /portfolio manager has applied the active portfolio management strategy by timing the markets. And, trnsformed the existing portfolio to the new strategic portfolio comprised of same asset classes but with different asset allocation percentages. Sometimes, the strtegic portfolio management brings in new asset classes by the investors /portfolio managers, which they expected to be the best future performers.

After a year, his expectation got true and market had underperformed by 40%. That has similar effect on his equity investment. So he lost  Rs. Rs. 1,00,000 in equity and  instead of Rs. 1,60,000 if he might have invested Rs. 4,00,000. So, more exposer to the debt and gold has earned him more money in the form of interest and gold price appreciation. That’s how the strategic portfolio has saved him from big equity loss and earned extra money.

For each strategy there is always a second side of possibility. Let’s consider the scenario that markets moved forward and up by