Market Preview.
At 8:00am IST, the SGX Nifty Futures was trading at 9,145, 0.1% lower compared with its previous close. On Thursday, FII/FPIs sold stocks worth Rs 2,152 crore and DIIs bought stocks worth Rs 802 crore.
Global stock markets: Dow 30, +1.6%; S&P 500, +1.2%; Nasdaq, +0.9%; KOSPI, -0.2%; Nikkei, +0.04%, Hang Seng, -0.2%; Shanghai Composite, +0.01%.
Yesterday, Nifty, after a gap down opening, continued to remain bearish and closed near the day's low holding significant losses. However, Nifty escaped a distribution day as volume was lower than the previous session through the index declined more than 0.2%. In the broader market, both Nifty Midcap and Smallcap closed 0.4% and 1% lower, respectively.
Even though the market is in a Confirmed Uptrend, we are cautious about the weakness in the market. We will be nimble in profit/loss booking. The beauty of our CAN SLIM method is that we need not "expect," "hope," or "wish for" when it comes to market action. We will take what the market gives us and continue to monitor unfolding conditions.
We always look for stocks with strong relative strength. But investors should understand that it is not prudent to blindly buy stocks that have a high relative strength simply because they have been performing well. This is the essence of momentum investing, and it can get you into trouble. Rather, one should base buying decisions on sound fundamental and technical analysis. Only invest in stocks that have strong fundamentals (i.e., good sales, earnings, margins, etc.) and are breaking out of sound base structures on heavy volume.
Key News
Biocon (Nse) announced its Q4 results. Revenue increased 6% y/y to Rs 1,644 crore. PBT declined 28% and PAT 42% to Rs 123 crore.
Manappuram Finance’s total income for the March quarter rose 38.7% to Rs 1,618 crore. PAT increased 44% to Rs 398 crore.
Tata Consumer Products’s net sales grew 35% y/y to Rs 2,405 crore. However, it posted a loss of Rs 122 crore compared with Rs 36 crore profit in the corresponding quarter last year.
Cipla, L&T Finance Holdings, L&T Technology Services, and Maha.& Maha.Finl.Svs. will announce their Q4 results today.
When we add any stock, investors shouldn’t play all their cards at once. We would suggest adopting an investment approach where you begin with a small allocation and increase it as and when the market advances further.
What do you think? Please email us any questions or comments.
Disclaimer: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. It is for educational purposes only.
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HAPPY TRADING !!
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