Indexfunds
EFT BASED INVESTINGHello Readers!
As of EOD 01-10-2021, the indices ended in a good amount of Red and there is some sort of pessimism set in from the posts, messages that I have been reading and watching. People have started calling for downward levels citing DXY and global issues and whatnot.
As a trader/investor, I feel that the greater the pessimism and such pessimism is confirmed by a downward price move, the better it is. The reason is very simple -
We are not in a sorry state as we were in March-April 2020. So any dip may only be seen as a buying opportunity as indices eventually would go up. The problem occurs when one is trading in derivates where MTM losses have to be settled with the exchange via the broker and that is where the pain comes.
However, if one buys quality scrips during such dips, those would go up if not in line with the markets at least in line with the sectoral trend. But again, which stock to pick may be an issue as either these are already hanging in the air or are nowhere near fundamental/technical levels to initiate a buy.
So I thought of doing a check on the NIFTY as well as BANK NIFTY ETFs - where I already have some holdings invested at lower levels. I was quite pleased with what I ended up working out and therefore, thought of sharing the same with you folks. In fact, just before recording this video, I was talking to a friend and I explained to him what I have explained in the video and he was quite interested in placing the order next week.
Now, I am not a SEBI regd analyst / advisor, but my view is medium to long term as eventually, over a period of time indices tend to achieve higher highs and that is why I thought of this approach to investing.
Please let me know what do you think about it. Based on where NIFTY trades on 4-10-21, I may invest part of my funds into both the approaches that I have shared in the video.
Happy Learniing, Investing & Money Making!
Umesh
2-10-21
