Nifty above 10600 mark

Blog meant for 25 April 2018 Wednesday

Dear friends,

Nifty continued the slow up-move and close above the 10600 mark. It ended at 10614. Global cues are mixed once again tonight. Some US and European markets are positive and some are negative as of now. Although, global cues have not been very positive, our markets have still stayed strong and positive.

Nifty is in Hold zone for short term.

The indications for individual stocks for short term only are –

DON’T BUY – SBI, AXIS BANK

HOLD – TITAN, M&M, ASIAN PAINT, HDFC BANK, RELIANCE INDUSTRIES, HINDALCO, TCS, ITC, MARUTI, YES BANK

WAIT TO SELL – VEDANTA, INFOSYS

TOO LATE TO BUY – HDFC

If you are investing for long term, then continue regularly without missing out any month. Every day and month is crucial for compounding for long term investors.

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Question of the Day –

I need money after 1 month for some important purpose. Till then, in which stock can I invest to get good returns?

Answer –

If you need the money for some important purpose after a fixed tenure of 1 month, 2 months or so, then we should not be investing the money in stocks at all. Stock Markets are meant for long term investments such as 8-10-20 years etc or when we invest for short term, we invest with the idea of earning more than what we would have earned in Bank FDs. However, the period of holding for short term depends on the markets and not when we need money.

However, when we need a particular definitely in the next 1 month or so, then whatever is the situation in the market, we cannot be sure whether we will be in profits. There is always a chance that one month later when we need money, it may be trading slightly below our purchase price and therefore we have to book a loss etc.

Hence, for short term period such as few months when you definitely need money for some purpose, it is better to keep it in liquid mutual funds so that we earn more than Savings account interest but at the same time, can utilise the money whenever we need it.

All the best!

Dr.Bharath Chandra and Rohan

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(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)