Most stocks in Hold zone for short term

Blog meant for 11 April 2018 Wednesday

Dear friends,

Nifty continued its uptrend today, as Asian markets went up again. Even European markets and US markets are up by more than 1% as of now. Nifty closed at 10402 today.

Nifty is in Hold zone for short term.

The indications for individual stocks for short term are –

DON’T BUY – VEDANTA, INFOSYS

HOLD – TITAN, MARUTI, M&M, ASIAN PAINT, HDFC BANK, YES BANK, SBI, ITC, AXIS BANK, RELIANCE INDUSTRIES

TOO LATE TO BUY / HOLD –HINDALCO

SELL – HDFC

WAIT TO BUY – TCS

No change in instructions for long term investors. Just continue to buy bluechips only.

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Question of the Day – 

I have attended your Workshop about 7 years back. I have been investing for long term regularly and also doing short term trades based on the blog in only shares suggested and used to make minimum 15-20% per annum over the years. However, some months back, I became very confident and did my own research and selected some smaller or less profitable companies such Syndicate Bank, LIC Housing Finance etc. Now, I they have all gone down and I am facing a significant loss. What to do? Shall I sell the shares at a loss and buy only what is being suggested or shall I buy more of these shares to average the cost?

Answer – 

When we discuss Stock Markets in our Workshops, we suggest and advise and talk in a very conservative manner so that participants who are future investors do not become over-confident and take unnecessary risk with the idea of making huge profits. These investors make good, consistent profits and feel happy.

After some years, their confidence in their investment decisions increases and also their friends/relatives advise not to select bluechips which do not give highest profit.

Bluechip shares = Low to medium returns but lowest risk

Unknown shares or small companies = High returns but lowest safety

They get attracted by the idea of making high returns and they forget that they have sacrificed all the safety to earn high returns.

Usually, when markets fall or when bad companies are selected, there is high chance of loss and once they reach this situation, they regret their decision to select these companies.

This is what must have mentioned in the above case too.

Our suggestion would be to wait for a few days and sell off the bad companies. Better to stick to bluechips so that returns will be more sure.

Losses such as these must be treated as lessons for mistakes made by us in selecting wrong stocks and purchasing them at the wrong time. If we don’t learn from mistakes, we may make similar mistakes now and then and continue to lose money unnecessarily.

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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)