Decoding Indian Equities

👉Last week Nifty had broken 10000 Support & Slipped in 4 Digit and Bounce back as it was oversold and closed at 10113 on 28 March 2018.

👉For April Series we @wealthcreatures Feel 10050-10000 is very Strong Support for Nifty in short term.If that levels are broken we can see 9850/9710 And On Upper side If Nifty manages to close Above 200 DMA For few trading session ,Which is around 10175 Than Nifty can Trade at Higher Levels Of 10340/400/ 10500+.Nifty can face Profit Booking & Multiple Resistance at a Higher Levels.

👉Quality Largecap and Midcaps have corrected 20% to 50% in this fall and few stocks are looking attractive as fundamentals are intact. Investors should take advantage of adding quality stocks in SIP whenever there is dips in markets to create Long Term Wealth & Building Portfolio.As Earning season starts from Mid April there can be lot of Stock specific Action in markets.

👉In our last addition we had recommended adding quality stocks on all dips when Nifty was trading near 10030.Trading opportunities were also available.After that Nifty Bounce.

👉Many Investors were Waiting for Nifty to Hit Bottom,But as we had told earlier that many good quality stocks might have already made a bottom were Earning visibility are there.

👉This can be Time wise correction which can last from 1 month to 12 months or even higher, As lots of political & Global Tension currently dominating Indian Equities.Overall Valuation still not mouthwatering But still there are many pockets available at Resonable Valuation with earnings growth ,which can provide edge even if market falls.

👉Markets are worried for Political uncertainty, as several state elections are due.But long term investors would also be looking at Valuation and Earning Growth.The growth cycle from 2019 onwards would be more stronger as Effects Of GST, Bankruptcy law,PSU banks fund infusion,RERA & have to look at E Way bill how it works out in next few years.

👉If Earnings upgrade come in next one year that can be Roadmap for the Nifty.Now going by Earnings Of Nifty50. For FY18 ➡️9months Eps – 362.40 & Expected Earning For Q4FY18-140 , So Full year FY18 Expected EPS would be 502.40 approx.

As expected Q4FY18 Earnings would be around 140 than there would be growth of 27% YOY & 9.4% QoQ.

FY19 Expected Earnings for Nifty is 577. Even after giving 10% Discount to Expected Earning Of FY19 that we are Trading at 19.52 Times FY19 Earning & 20.24 Times Fy18 Earnings which are Higher when compared to Long Term averages.

👉If we compare Market Cap to GDP It is still at 84% To 86% which is slightly on Higher side when compared to last 10 year average.

👉2018 can be a silent Year in terms of absolute Returns on Nifty and Sensex. But there would always be huge money made outside Nifty and multiple winners can be found there.


👉All Views Expressed are Personal & for Study Purpose .Consult Your Financial Advisory before Before taking any position.

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