Good rally for global markets

Blog meant for 20 June 2017 Tuesday

Dear friends,

Nifty had a good rally today after many days as it went up due to very positive global cues and closed at 9657. All the Asian, European and US markets are trading positive as of now. The good global cues may help markets to stay positive tomorrow.

As per 30 days moving average, Nifty is in Hold zone.
The indications for short term for individual stocks are as follows:

THE HOLDS ARE – HDFC BANK, MARUTI, HDFC, DIVISLAB, Titan, ITC, Reliance, M&M, Axis Bank

Buy – Asian Paint

Wait to Buy –  ACC, SBI, L&T

Don’t Buy –  LUPIN, BHEL, ONGC, Infosys, TCS,  YES Bank

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Question of the Day

Question – What are some of the mistakes people do in long term investing?

Answer – The following are some of the common mistakes which investors do when investing for long term –

1. Lack of patience – They start with the idea of investing for 10-15 years minimum but end up getting impatient and sell in 4-5 years, thereby making limited profits or sometimes even making a loss if they sell when the markets are at a low.

2. Irregular investing – Investors are very excited to invest when markets are continuously rising but during market falls or downturns, they stop their monthly investments. In fact, when price of good companies have fallen, we should be more excited to buy since we are getting prices at a discount.

3. Postpone investing – Many youngsters do not understand the power of compounding and long term investing and start investing much later in life. Instead of starting at the age of 25, they unnecessarily postpone till the age of 35 or 40 years.

4. Selecting wrong companies – investing in wrong companies and holding for long term is of no use since the selection of companies is the most important part of long term investing. Investing in a good company and holding for 10 years plus will give good returns. However, investing in sub-standard and unknown companies and holding for any number of years may not result in any profit.

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All the best!

Dr.Bharath Chandra