Stocks Market Analysis – Technical’s and Fundamentals

Broadly, there are two ways to approach the stock markets. There is the fundamental approach wherein you look at the inherent strengths of the company, evaluate its operating environment and then take a call on whether to buy or sell the stock. The other approach is a technical approach wherein you rely more on charts and patterns to take a view of markets. Let us understand these approaches a little better…

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Things you need to know about investing in ELSS

Equity linked savings schemes (ELSS) has emerged as a solid tax-saving avenue in the last few years. The reasons are not far to seek! ELSS combines the best of equity returns and tax savings giving a powerful post-tax performance. But here are a few things you need to be aware of an ELSS Continue reading

D-Mart Valuations

It may appear to be steep, but it is hardly overpriced…

There were some real concerns when Avenue Supermarts (the company that operates the chain of D-Mart Stores) actually reported lower profit growth in the September quarter. The profit growth fell from above 35% in the previous quarter to a level of 26%. This sharp fall in profit growth led to concerns that the valuations may be a little too steep for comfort at 90-95X. While the concerns are justified, investors do not need to get overly worried about the same. Here is why! Continue reading

Trading Rule – “Please, no Ifs and Buts in trading”…

Remember a very important rule of trading; you need to take responsibility for your trades. You can argue that prices went down due to factors beyond your control. But that does not help! As a trader or an investor in the stock markets, the buck stops with you and you alone. You may not have control over events but you surely have control over managing your risk and that is what you are expected to do. But, no excuses please! Continue reading

Trading Rule – “Always focus on the winners in a group”…

One of the basic rules of investing in the markets is that normally it is the sectoral leaders or the thematic leaders who actually give you outperformance. The focus should not be on existing leaders but companies with the potential to emerge as future leaders. Classic examples are hero honda and bharti in the indian context. They not only disrupted an entire industry but ended up dominating the industry for many years! Continue reading

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