Time To Buy Quality Mid & Smallcaps On Dips or Time To Exit ?

“Out of all the Global Economic & Political Uncertainty we concentrate on Quality business which have Potential to Outperform In Long term”

👉Focusing on Individual stocks which will outperform Nifty over a period of Time.No need to Exit Quality midcap or Smallcaps If your invested Stock is showing good Growth in Sales,Net Profits,Margins , Capex planned or Done & Most important Trading Resonable compared to overall sector and Outlook for that sector should be positive you don’t need to worry. Just hold Your stocks Tightly ➡️Sentiments would soon turn positive.You only should have Patience.

👉In last 2 to 4 years many Midcaps have Rise 10 to 15 Times. Even after such a Rise Many Stocks looks Resonable & can Gain Even more in future as Earning visibility is there and On grounds reality Companies are doing extremely Well.This week even in down markets few Such stocks like HEG,Graphite,Venkys ,Avanti feed, Rain Inds etc Showed Great Strength.

👉Many Analyst are Giving Down targets for Nifty as next week there are Big Events like

➡️FED Meet for Rate Hike Expectation On 20th & 21st March.

➡️The term of 58 Rajya sabha would expire in April & May. The polls of 58 Rajya Sabha Seats would be held on 23rd March.

And any short of Negativity can Futher play dampner & That can effect markets in near term. High volatility Expected Next Week.No one can Time markets perfectly, we can just Make assumption on Current Market scenerio & based on Events.

👉No one knows where’s the exact Bottom for Nifty is, we @ Wealthcreatures feel Investor with Medium to long term Should Concentrate On Quality Bussiness & Keep Adding Quality Midcaps & Smallcaps in SIP as many Quality stocks corrected 20% to 40% , Midcap & Smallcap is the space where we feel there is tremendous opportunities.Those who have 2 to 3 years horizon would Definitely Mint Huge Money once Midcaps Turns Positive.

👉On Friday Bears smashed Nifty to 10195 with loss of almost 165 points on Nifty. The Cut came due to political uncertainty that arise after Telugu Dasan party pulled out of NDA Government & Also On Trade war fears on Global fronts. Nifty can Retest lows of 10130 or even 10000/ 10050 Levels. We assume that it can even get more volatile & there can be a deeper cut on Nifty If Level Of 10000 is broken But finally Nifty has to go up over a period of time.400/500 points on Nifty wont matter for you If you are here to make money in long term.

👉Markets don’t like Uncertainty .The biggest Threat To markets are political instability. Politics would influence markets sentiments in 2018 & 2019 . But Equities would be preferred bet as long term Against all Asset class.

👉We feel Long Term Investor should not get Carried away by short term volatility. Markets should consolidate in a range before giving an uptrend.We can hope this can be last Leg of correction which can last longer and can be more painful if support levels of 100130/10000 is broken and it would be time wise correction too.Dont expect Fast Recovery soon. so look for levels on Nifty before buying & Be stock Specific.

👉PSU banks can be seen as bounce back & If they fall 10% To 15% More incase If Nifty corrects than it can be a good buying opportunities for long term with a 2 to 3 years View.

👉Increasing Infra Spend can argue well for Companies like Dilip Buildcon,NCC, Ramky Infra To Name a few.

👉We feel this is still a bull market correction in India & Globally. There is temporary cool down so that it does not enter in bubble zone.

👉 This time wise correction will help certain stocks earnings to catch up the recent Run up in valuations and again it will make certain specific stocks more attractive.

👉 The volatility arising out of political uncertainity will give opportunity for Short term trading as well as Long term trading.

👉 We suggest to be more stock specific as against nifty.

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Happy Investing !!

We wish you Happy Gudi Padwa & a prosperous Year Ahed !!!

3 thoughts on “Time To Buy Quality Mid & Smallcaps On Dips or Time To Exit ?

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