BLOG MEANT FOR 29 JUNE 2018 FRIDAY
Dear friends,
Markets weakness continued today too. Nifty fell by 82 points to close at 10589. Asian markets were once again quite weak today and European markets have also closed weak. US markets are flat as of now.
Since today was the last day of Futures & Options contracts for June month, markets were volatile and weak.
Nifty is in DON’T BUY zone for short term.
The indications for individual stocks for short term only are –
DON’T BUY ZONE – VEDANTA, ITC, TITAN, ASIAN PAINT, HINDALCO, AXIS BANK, YES BANK, SBI
HOLD ZONE – TCS, INFOSYS, HDFC BANK, HDFC, M&M
SELL – MARUTI, RELIANCE INDUSTRIES
Long term investors must be excited to buy good companies at lower prices after the recent fall in prices.
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Investors who have started investing during the last 1 to 1.5 years have not seen/experienced a strong market fall or weakness. Many investors may have also started to believe that markets always go up. However, in short term, markets will go up and down and such a movement is normal.
Over many years, good companies will definitely go higher but it does not mean that it continuously go up.
For example, following is Titan’s share price historical record –
| Month & Year | Monthy Average Price (Rs.) |
| Jun-13 | 224 |
| Dec-13 | 229 |
| Jun-14 | 353 |
| Dec-14 | 381 |
| Jun-15 | 366 |
| Dec-15 | 347 |
| Jun-16 | 405 |
| Dec-16 | 326 |
| Jun-17 | 524 |
| Dec-17 | 856 |
| Jun-18 | 838 |
As you can see, certain periods have been dull in terms of not much movement and in other periods, there has been huge appreciation in a short period.
In Stock Markets, the returns are not a constant percentage which is the case in FDs which will give you exactly 7% per annum.
In Stock Markets, you may get 20% in one year, 15% in another year, -5 % in another year, 10% in next year etc. On an average, we can expect 15-25% per annum returns over a long period of 10 years plus.
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All the best!
Dr.Bharath Chandra & 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)
