🔷️No one knows the Exact bottom of Nifty.Nifty has corrected from Highs of 12430 Recorded on 20th Jan’20 To 7833 on 19th March’20. We have seen correction of almost 37% in Nifty From Highs Recorded in January’20.
🔷️Even Bank Nifty has corrected almost 43% from Highs of 32613 Recorded on 30th Dec’19 To 18676 On 19th March’20.Midcap & smallcap stocks have seen huge beating.
🔷️Covid 2019 has hit almost all stocks very Badly.But This can be a Golden opportunity to add Quality names and quality Bussiness with Good Promotors track record.
🔷️Due you remember when markets where down in 2014/2012/2008/2003 due to some or the other reason.Did they recovered over a period of time YES OR NO?? You better know the answer.
AT PRICE TO BOOK OF 2.49
2008 BOTTOM P/B – 1.89
2012 BOTTOM P/B – 1.85
2002 BOTTOM P/B – 1.65
💢IF WE GO BY ABOVE DATA BELOW 7833 WE CAN SEE 7500/7200 Also, WHERE BOTTOM CAN BE IF WE GO BY P/B Ratio
💢NIFTY EPS – 443 & NIFTY IS TRADING
AT P/E OF 19.72
💢P/E OF 13 TO 16 CAN BE CLOSE TO BOTTOM IF WE GO BY PAST DATA.SO IF WE GO BY P/E RATIO SUB 7000 CAN BE BOTTOM.NEED TO WATCH 7833 VERY CLOSELY,BELOW THOSE WE CAN SEE ABOVE LEVELS.CURRENTLY 7833 CAN BE CLOSELY WATCH
💢AS PREDICTED BEFORE ALSO ONLY AFT SECOND HALF OF 2020 WE CAN SEE SUSTAINED UPMOVE GRADULLY
🔷️Many keeps saying 5 or 10 years back this STOCK was available at so and so price.Now it has grown so many times. Again you have got chance to get Quality stocks at Much discounted & Lower prices.
🔷️Would suggest to Make a portfolio of 15 to 20 stocks from diffrent Industry. Largecap/Midcaps/smallcaps & microcaps as per your risk.
🔷️Coronavirus scare has grown multi-fold post its spread across the key economic zone of Europe and the US. The number of affected cases in India is not significant but they are rising which does pose a challenge for the government.
🔷️The outbreak of the coronavirus will definitely have an overall impact on global as well as Indian GDP growth in the interim. But, investors have seen a similar situation in the past, and the big takeaway is investing in this market in a staggered way, will create wealth.
🔷️Never say I would hold this STOCK for 5/10/15 years.Gone are the days when this theory was working.still it’s working But Always one needs to book some profits when markets or stock is running at all time high or at greater valuation.Never miss a chance to Book profits.Nothing Harm in that.
🔷️Sooner or later you would get same STOCK at lower valuation as markets looks at some or the other reason to go down once is few years.
🔷️Those who never Booked profits or Those who never kept STRICT stop loss or never applied any risk management to there portfolio might have to see there portfolio getting eroded by almost 50% To 75% in this downtick.
🔷️Above Image shows that even after markets are not Down It has recovered and Grown over a period of time.We have not this kind of Wealth Eroision 1st time.But the Speed of fall was very fast and severe.
🔷️Historically, it has been seen that market recovery in such a case is usually sharp and quick and precedes the economic growth rebound. Therefore, we see the current correction as a buying opportunity for the investors who should utilise the declines to lap up good and quality Bussiness which have comfortable leverage and strong return ratios and enjoy leadership position
🔷️Keep in mind every Bull market has New Sets of MULTIBAGGER and New sector. One should invest only with Companies With Good Promotors & investor friendly MANAGEMENT only.Try to invest in companies with Low Debt or are Virtully debt free.Those one would be less affected.
In our next edition we would eleborate Sector wise Top Rated Scripts which one can Keep on Radar.
Disc – All views are personal and only for study and Educational purpose only. Consult your financial advisor before investing or taking any position based on above article.
WealthCreatures 