Global cues stay weak

Blog meant for 5 March 2018 Monday

Dear friends,

Negative close for Nifty on Thursday. It closed down by 35 points. The global cues were very negative on Friday in Asia and Europe. There is a good chance Nifty may open negatively tomorrow morning due to weakness in global markets.

The analysis for Short term as per technical analysis is as follows:

Nifty is in Don’t Buy zone.

The indications for individual stocks for short term are –

DON’T BUY – HINDALCO, ASIAN PAINT, TITAN, MARUTI, M&M, SBI, YES BANK, AXIS BANK, ITC, HDFC BANK, HDFC, VEDANTA

HOLD – Reliance Industries, Infosys

WAIT TO SELL – TCS

There are no fresh buy indications for short term as of now. Do not take any unnecessary actions for short term.

Long term investors can continue to buy bluechips on monthly basis. Do not worry about any short term fluctuations for buying for long term.

The graph and the blog are meant for only short term and long term investors should buy bluechip shares every month at whatever price it is available at.

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Question from a Participant 

Should we buy all bluechip companies in equal number of quantity or should we buy the shares by investing equal amounts irrespective of the quantity purchased?

Our Answer – 

This is a fundamental question which many people and is covered in the Workshop. 

Suppose you are investing in 6 bluechip companies for long term, each company’s share has a different price. It is not possible to buy equal quantity of shares of each companies.

For example, Maruti Suzuki per share price is around Rs.9000, whereas, the price of Titan shares are Rs.800 per share.

Hence, if you try to buy 10 shares of each companies, for Maruti you will need Rs.9000 X 10 = Rs.90,000 and for Titan only 800 X 10 = Rs.8,000. The investment made will not be equal when you follow this method. In fact this is a mistake many investors do.

You should look to invest equal amounts in all the 6-7 companies suggested during the Workshop.

For example, if you want to invest Rs.50,000 in total. Then Rs.50,000 divided by 6 will be around Rs.8500 per company.

Hence, for Maruti, you will buy one share for Rs.8500-9000 and for Titan you can buy 10 shares. In this technique, you would have invested equal amounts in all the companies based on the value and not based on quantity held.

You will have different quantity of shares of each company but similar value of shares.

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All the best!

Dr.Bharath Chandra and Rohan

Please do not comment on the blog. Any questions or clarifications can be asked by sending us an email with your registration number given to you during the Workshop. Questions without quoting registration number will not be answered.

(The above comments are only the personal views of the authors of this blog. Please do your own research before taking any investment decisions. The reader of this blog must understand and take full responsibility for the Profit or Loss made by taking actions based on the above views)