Tuesday, 16 February 2016

5 Reasons why a market turn around is near

1. Valuations attractive

As you can see, nifty fell down from 9100 last march to 6900 which is almost 25%. With one-fourth wealth wiped out already from the investors money, I would not say it to be the best time but this is a good time to enter. Last year many investors did not have an idea on when to enter. The situation is better now.

Also one has to keep in mind that during the economic crisis of 2008, nifty fell more than 50%. So it is good not to invest everything you have.

2. Technicals look good

Both the RSI and the EMA (50 & 250 days) says a clear buy on the nifty. Most individual stocks follow the trend. Buying quality names will not be a bad decision. Enter into FMCG/Pharma at the moment if you are still worrying about the bank recovery.



3. Budget session

Govt is trying to bring in few reforms this Budget session. This might include strict NPA clause for the banks. You can expect banks to do well once this is enforced.

4. Oil price

With decreased oil price you can expect the profitability to go up for the companies as their logistics might come down. Also as the govt generates more money out of the petrol excise duty, public sectors might receive more money in-flow due to this surplus money

5. History

History suggests us that a big downfall is always followed by an uptrend or bull that takes the market to new peak. In another 5 years, expect nifty to break 10K. With systematic investment, you can make huge money when that happens. Invest in the right stocks

Happy Investment!!

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