After many days of bearish mood markets on monday started moving up. First two days bit caucious but yesterday it gave a good upward movement and today its showing clear up moves. So if you were sitting on cash buy your favourite stock now. Capital goods, banks look good.....all the market is very confident. Nifty sustains over 3671 levels, and sensex has broken the barriers of 12800 levels....so it looks bullish now.......
IFCI looks very good for long term.
Thursday, March 22, 2007
Tuesday, March 20, 2007
how to pick good stocks
So how to pick good stocks for invest ment point of view? So always go for fundamentally strong companies, which you know since long, their business model should be good. Managemnt should be professional. And sector hould be doing well, reasonably valued should not have high PE ratio( its mntioned in the newspapers too,so chek it) 5-8 PE is good to invest, and it is more than 40 odd then stay away of the scrip and wait till correction.
When markets starts going up then you should enter, first decide which stocks you want to buy, write down on paper at which rate you want it. Check high and lows of the year, always try to buy 25% lower level of the 52week high. One must always carry 20% cash in his portfolio so when markets cracks o0r has correction you can buy your faviourite stocks or even averagfe your earlier scrips too.
Always try to invest in leaders of the sector, say in technology Infosys is the leader, so always try to buy infosys, no matter it is bit costly but it will give you very good and firm returns...so if you have Rs.5000/- to invest buy 2 infy instead of buying any low rate mid cap or small cap stocks cos it will not give you firm and good return in long term.
So first decide how much money you want to put in stocks, then make a paper work then go for leaders and your price, when it comes to that level, put your money, it should always be considered that markets may go dwon and the price at which you have bought the stock too might fall, but always think of longer prospective and then you will find that it gives you atleast 25-30% returns on your investment. So never scare or worry if your scrip goes down once the correction is over it too will move up....and if you the front line stocks then they move fast and first.
so where can you invest now when sensex is @12706 and nifty@ 3697..
so you can put your money in
BHARTI........around 720-740
INFOSYS.......2050
BHEL..........1950-2000
SAIL..........102-104
L&T...........1450-1550
ABB...........3250-3300
SIEMEN........1000-1050
M&M............720-730
dicloser: infosys,sail,siemens
When markets starts going up then you should enter, first decide which stocks you want to buy, write down on paper at which rate you want it. Check high and lows of the year, always try to buy 25% lower level of the 52week high. One must always carry 20% cash in his portfolio so when markets cracks o0r has correction you can buy your faviourite stocks or even averagfe your earlier scrips too.
Always try to invest in leaders of the sector, say in technology Infosys is the leader, so always try to buy infosys, no matter it is bit costly but it will give you very good and firm returns...so if you have Rs.5000/- to invest buy 2 infy instead of buying any low rate mid cap or small cap stocks cos it will not give you firm and good return in long term.
So first decide how much money you want to put in stocks, then make a paper work then go for leaders and your price, when it comes to that level, put your money, it should always be considered that markets may go dwon and the price at which you have bought the stock too might fall, but always think of longer prospective and then you will find that it gives you atleast 25-30% returns on your investment. So never scare or worry if your scrip goes down once the correction is over it too will move up....and if you the front line stocks then they move fast and first.
so where can you invest now when sensex is @12706 and nifty@ 3697..
so you can put your money in
BHARTI........around 720-740
INFOSYS.......2050
BHEL..........1950-2000
SAIL..........102-104
L&T...........1450-1550
ABB...........3250-3300
SIEMEN........1000-1050
M&M............720-730
dicloser: infosys,sail,siemens
Sunday, March 18, 2007
Technical and Fundamental
So what is technical and fundamental views of the market? technical view is at certain point the market of a perticular scrips have barriers or hv resistances and the scrip goes till it and again comes back, or if it its resistance, where traders take out their money and again they wait the scrip to go down to a certain level, where they want to buy it...so many times you might have seen stocks moving in the range ...so they are range bound, they try to break their resistance but whenever it touches the certain level traders are again active and they sell it and it creats selling pressure and again the stock comes down...it has a stop loss too, so what is it? It means if it breaks its downside level then the sentiment is panic for it and it will go further downside.... traders get panic and sell ...when it breaks its resistance,that is its upside barrier then it will go further up.....traders follow certain technical charts and they are formed on various issues. The chartists gives these chart patterns on day today basis and short term and long term too.
What is fundamental?
We as an invester should always follow fundamental charts that is how the company is doing? who are the promoters? how the sector is doing? what are the global views? and what are the political views? so they all give impact on the fundamental charts, it will tell you the company's balance sheet, their order book, work model, etc. So if it is doing well then they have strong fundamentals, and one need not to worry if a correction is there because when the correction is over it will definitely attract investers towards it because investers also want good returns of their money, and they will be ready to invest in such fundamentally strong companies, so always think a correction as an good opportunity to invest in our favourite stocks.
What is fundamental?
We as an invester should always follow fundamental charts that is how the company is doing? who are the promoters? how the sector is doing? what are the global views? and what are the political views? so they all give impact on the fundamental charts, it will tell you the company's balance sheet, their order book, work model, etc. So if it is doing well then they have strong fundamentals, and one need not to worry if a correction is there because when the correction is over it will definitely attract investers towards it because investers also want good returns of their money, and they will be ready to invest in such fundamentally strong companies, so always think a correction as an good opportunity to invest in our favourite stocks.
Wednesday, March 14, 2007
know stocks
Stock market always attracts us but some of us might know very few about it. The ups and downs, speculations, the tips, somebody says I made double my money in a week, and we are losing money......sad right? So is there any sure strategy? That we can double our money? And we will get good returns on our money? So yes you can make money but you should have a very long prospective not that put today and get tommorow....it too works 'sometimes'....not always, when you earn money once,twice and if you are quite lucky...then thrice but not always. It is very much possible that you may lose all your money in just a one bad "tip"....so its always risky to go by tips....and if you have sure tips too, should put very few amount in it...say only 10% of your portfolio. So if you win you might earn very littel as compared but if you lose the risk too is very low....so always try to play safer mode. Never be greedy...thats the first rule of stock market....
So where to put money? If you take my opinion I will always suggest that you should mainly invest in NIFTY Stocks.....the nifty 50.....as you mihgt know there are 50 selective stocks from each sector, which represent the market, so whenver you put yopur money in these stocks even when market is higher, and if the market collapses also you too will lose some money but the risk side is comparatively ....and the chances are that the stocks start moving upwards fast once the correction is over. So its the saffest play to put your money into. Then try to go sectorwise...like now technology, capital goods, telecommunication stocks are in limelight so better to invest in it. Avoid commodity stocks if you are fresher, since they have global impact on the prices........
What bout mid cap? yes there too are few midcap stocks where you can invest and get good returns over a period of time.......
Think first as you want to TRADE in stocks? or Invest in stock market......its totally different from each other, since a trader is who, who is playing day today and goes on technical charts, and he has nothing to do with the price of the stock he will just follow a perticular strategy say if he makes 20-25% he will sell it off no matter if it even doubles too!!!!!!! cos he is playng for very short time....
Invester is 'investing ' money in stocks and has long term prospective, say of 1 year or more so when you are invester one should not worry about the ups and downs of the scrips or the market.........never follow it day to day since it will only disturb you, remeber you have put your money for long term and you want a perticular returns after that period, so these short term changes should not disturb you. Thats why you must follow the strategy of investing in BLUE CHIPS only cos it has the potential to give you atlest 30% returns in year, sometimes it can be more too.
about technicals and fundamentals i wll tell in my next post....
So where to put money? If you take my opinion I will always suggest that you should mainly invest in NIFTY Stocks.....the nifty 50.....as you mihgt know there are 50 selective stocks from each sector, which represent the market, so whenver you put yopur money in these stocks even when market is higher, and if the market collapses also you too will lose some money but the risk side is comparatively ....and the chances are that the stocks start moving upwards fast once the correction is over. So its the saffest play to put your money into. Then try to go sectorwise...like now technology, capital goods, telecommunication stocks are in limelight so better to invest in it. Avoid commodity stocks if you are fresher, since they have global impact on the prices........
What bout mid cap? yes there too are few midcap stocks where you can invest and get good returns over a period of time.......
Think first as you want to TRADE in stocks? or Invest in stock market......its totally different from each other, since a trader is who, who is playing day today and goes on technical charts, and he has nothing to do with the price of the stock he will just follow a perticular strategy say if he makes 20-25% he will sell it off no matter if it even doubles too!!!!!!! cos he is playng for very short time....
Invester is 'investing ' money in stocks and has long term prospective, say of 1 year or more so when you are invester one should not worry about the ups and downs of the scrips or the market.........never follow it day to day since it will only disturb you, remeber you have put your money for long term and you want a perticular returns after that period, so these short term changes should not disturb you. Thats why you must follow the strategy of investing in BLUE CHIPS only cos it has the potential to give you atlest 30% returns in year, sometimes it can be more too.
about technicals and fundamentals i wll tell in my next post....
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