BLOG MEANT FOR 5 JULY 2018 THURSDAY
Dear friends,
Positive trend continued in our markets today also. Nifty went up by 70 points and closed at 10770. Asian markets were mixed and little weak and European markets are also slightly weak as of now. US markets are closed today due to a local holiday.
Nifty is in HOLD zone for short term.
The indications for individual stocks for short term only are –
DON’T BUY ZONE – AXIS BANK, SBI, ITC, HINDALCO, VEDANTA, TITAN
HOLD ZONE – TCS, INFOSYS, HDFC, MARUTI, ASIAN PAINT, HDFC BANK, RELIANCE
SELL ZONE – YES BANK
WAIT TO BUY ZONE – M&M
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The National Green Tribunal will tomorrow hear a plea moved by Vedanta Ltd challenging the Tamil Nadu government’s order to permanently close the Sterlite copper plant at Tuticorin.
The complete article can be read here – https://www.ndtv.com/india-news/green-court-to-hear-vedantas-plea-against-closure-of-sterlite-copper-plant-1878004
We have to see what the Green Tribunal decides on this issue. If it allows Vedanta to continue operations in the copper plant in Tamil Nadu, then it will be a positive news for the company. However, if Vedanta loses its plea in court, then it could lead to further share price fall due to the negative sentiment due to the news.
We have to also see if the April-June quarter results is affected by the plant closure. Based on that we may have to decide whether to continue investing or sell or stop further investments.
As of now, let us wait and wait. No need to immediately decide to sell until further clarity on the above.
Since it is only one of the holdings for long term apart from the other 5-6 sectors, it will have limited impact in the portfolio. As mentioned in the Workshop, this is why diversification is important and also we must invest equally in all companies and not more money in certain just because the share price is lower compared to other companies.
For example, we have seen many investors invest more in Vedanta (Rs.230) compared to another company such as L&T (Rs.1260) since they feel that it is they can buy more shares of Vedanta compared to L&T. Important point to note is that quantity of shares held does not result in profits. Appreciation of the company’s share price is the major reason for profits for investors.
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All the best!
Dr.Bharath Chandra and Rohan
(THE ABOVE COMMENTS ARE ONLY THE PERSONAL VIEWS OF THE AUTHORS OF THIS BLOG. PLEASE DO YOUR OWN RESEARCH BEFORE TAKING ANY INVESTMENT DECISIONS. THE READER OF THIS BLOG MUST UNDERSTAND AND TAKE FULL RESPONSIBILITY FOR THE PROFIT OR LOSS MADE BY TAKING ACTIONS BASED ON THE ABOVE VIEWS)
