Be Wise

 

Best Performing Sectors To Be Looked

The sectors which have great potential are as following -

1. Food - Company directly related to food & having broad range of domestic demand & also involved into food export has great advantage.

2. Technology

3. Power - The company into conservative oil & gas domain is great pick. Renewable/Electric Energy stock is also magnificent investment.

4. Leisure - Hotels

5. Infra      - Cement

6. Banks/NBFCs

One should use own knowledge & investment should be in accordance with the valuation of the Market. How much is the probability of the Market to go up or down. Investment is all about probability, if one is more closer to correct probability & investment is in good/great company then the probability has more chance of being converted into success.

How To Decode The Market

 The following video will give you required insight & knowledge to decode the Market & make a wise decision while you trade -

Midcap Company Has Great Value

A midcap company refers to a company with a market capitalization value between $2 billion and $10 billion. Market capitalization is the total market value of a company's outstanding shares, which is calculated by multiplying the current market price per share by the total number of shares outstanding.

These companies lie between small-cap companies (with market capitalizations below $2 billion) and large-cap companies (with market capitalizations above $10 billion) in terms of size and market value. Midcap companies are generally considered to have a moderate level of risk and growth potential compared to small- and large-cap companies. They tend to be more established and have a track record of growth but still have room for expansion and increased market share.

Investors often classify stocks as small-cap, midcap, or large-cap to assess the risk and return potential of their investments. Midcap companies are often considered a balanced choice for investors seeking a combination of growth potential and stability.

One should timely evaluate such company in their portfolio & investment should be done in parts to have good returns. Even choosing such company one should look their competitive strength & edge. The services & products offered. I personally believe one should also have fair idea about the business where the investment is made.

Complex Stock Picking Has Been Simplified

 

A company to be chosen as an investment, one should look for following qualities -

1. A strong leader with futuristic vision and strategic thinking: The company possesses a clear vision and is able to articulate it effectively. In a competition, this vision should align with the goals and expectations set forth by the management or organization. Developing a strategic plan and demonstrating how it can be implemented successfully is important to showcase leadership skills.

2. problem-solving abilities. It's very important aspect to look into a company that how it comes out of tough situation or how well it addresses those situations.

3. Adaptability and resilience: Company must have seen 2 - 3 recessions in the market, if organisation is new & has competitive edge then must possess all the other attributes as mentioned.

4. The Company with no debt or very less debt. Some of the great Companies have huge debt but that debt is utilised in increasing operation & business. Company making regular profits & growth.

5. Company with ROE 15 - 20% is considered good, if one can find out Stock giving ROE greater than that would be added advantage.

6 ROE considers profit generated on shareholders' equity but ROCE is the primary measure of how efficiently a company utilizes all available capital to generate additional profits. When ROCE exceeds ROE, it indicates that company has effectively used debt lower it's overall cost of capital. However, the higher ROCE shows that company is generating higher returns for the debt holders than for the equity holders. 

7. The Stock you opted should be dividend paying. 

8. Company should show continuous growth. Profit of the company should be seen in shares with rise in share price.

The company should be capable enough to differentiate the organization through the unique leadership style, and connect with the masses on a deeper level to maximize their chances of success.

What One Should Look At While Buying A Share

When considering buying a share, there are several factors to evaluate before making a decision. These factors include:

1.Company fundamentals:

Analyze the financial health, profitability, growth prospects, and competitive advantage of the company. Look into its revenue, earnings, debt levels, cash flow, market position, and industry trends.

2. Valuation:

Determine if the share price is reasonable compared to the company's current and future earnings potential. Consider traditional valuation metrics like Price-to-Earnings (P/E) ratio, Price-to-Sales (P/S) ratio, and Price-to-Book (P/B) ratio.

3. Industry outlook:

Research the industry in which the company operates to understand its potential growth prospects, demand trends, competition, and regulatory environment. Look for industries with long-term viability and positive growth potential.

4. Management team:

Assess the expertise, experience, and track record of the company's management. Consider their strategic vision, ability to execute plans, and alignment with shareholders' interests.

5. Competitive position:

Evaluate the company's market share, unique selling proposition, and competitive advantage. Consider how it differentiates itself from others in the industry and its ability to maintain or improve its market position.

6. Dividend policy:

If you seek regular income, check the dividend history, payout ratio, and the company's commitment to paying dividends. However, not all companies pay dividends, especially those in high-growth sectors that prefer reinvesting profits.

7. Risk analysis: 

Assess the risks associated with the company, such as industry-specific risks, competition, regulatory changes, and potential disruptions. Also, consider macroeconomic factors that could affect the company's performance.

8. Long-term prospects:

Look for companies with sustainable business models and a clear growth trajectory. Consider their ability to adapt to changing market conditions, technological advancements, and new consumer preferences.

Remember, investing in stocks carries risks, so it's essential to do thorough research, diversify your portfolio, and consider consulting with a financial advisor to make informed investment decisions.

Stock Market Analysis

                                                 Bull Market

1)- The market outlook is positive     

2)-The investors are optimistic with long positions & anticipations in security will lead higher prices.                                              

3)- The economy grows sustainably  as GDP provides key indication.                

4)- The job market in bullish market has great opportunities. Great income.                

5)- Positive Market breadth.              

6)- There is large liquidity flow in the market as great investment amount flows in the market.                                           

7)- IPO activities are encouraged.              

8)- Investment by foreign countries in the bullish country.                                      

9)- It encourages banking sector to reduce interest rates on loans so that business activities grow prompting expansionary policies by the Central Bank & the Government.          

10)- The yields on securities & dividend are low due to financial strength of the investors  & security received by others on investment made.

                                            Bear Market

1)- The market outlook is negative.

2)-The investors are pessimistic with short positions & anticipations in security will lead lower prices.

3)- The growth in economy is not sustainable as GDP provides key indication.

4)- The job market in bearish market has lesser opportunities. Declining income.

5)-  Negative  Market breadth.

6)- There is scarcity of  liquidity flow in the market as no or meager amount of investment is done in the market.

7)- IPO activities are not great or not made. 

8 )- Investment by foreign counties are not encouraging. 

9)- The banking sector will curb the usage of money for emergency situation prompting contractionary policies by the highest authorities. The interest rates would be held stable or increased.

10)- The yields on securities & dividend would be very high due to fund requirement from the investors & Paying them higher yields on securities afterwards.

Recession-The period of general economic decline is usually defined as a contraction in the GDP for six months (two consecutive quarters) or longer. It is accompanied by high unemployment, stagnant wages, and fall in retail sales, a recession generally does not last longer than one year and is much milder than a depression. Although recessions are considered a normal part of a capitalist economy, there is no unanimity of economists on its causes.

Depression- A depression is a severe and prolonged downturn in economic activity. In economics, a depression is commonly defined as an extreme recession that lasts three or more years or leads to a decline in real gross domestic product (GDP) of at least 10 percent. In times of depression, consumer confidence and investments decrease, causing the economy to shut down. Economic factors that characterize a depression include:

• Substantial increases in unemployment
• A drop in available credit
• Diminishing output
• Bankruptcies
• Sovereign debt defaults
• Reduced trade and commerce
• Sustained volatility in currency values