Muthoot Finance is one of my favourite stocks in the finance sector. The formulae I use to calculate intrinsic value suggests this stock, whereas it somewhat fails in the valuation of Bajaj Finance, SBI Cards, etc.
It is trading at a PE (Price to earnings ratio) of 11.62, whereas Bajaj Finance is 51.29 and SBI Cards is 45.53.
In most cases, the lower PE...
I often wonder why do retail people and even institutions sell when the stock has been already fell. Why didn't they sell when the stock was rising?
I follow a simple principal. Either sell it at a profit or don't sell.
Anyways, In the weekly chart of the ultratech, you must have noticed the circles I've drawn.
These circles represent the price as well...
India VIX is a volatility index based on the NIFTY Index Option prices. From the best bid-ask prices of NIFTY Options contracts, a volatility figure (%) is calculated which indicates the expected market volatility over the next 30 calendar days.
In simple words, it tells us the % market is expecting Nifty to move (whether up or down) in the upcoming 30...
In this article, I am sharing my understanding of the following subjects. Please correct me if I am wrong in any of the mentioned things.
1. Book value is a value of total assets over total liabilities. Means, Total Assets - Total Liabilities.
2. Meaning, the amount available to the shareholders (per share) whenever the company goes into...
RBL Bank has been fell hard, since the change of CEO, correcting about 90% from the all time highs.
According to me, there can be 2 main reasons:-
1. The Market is wondering if the CEO is a idle choice. RBL Bank is a private sector bank, and CEO came from a Public Sector bank.
2. The market is also thinking if this could be next Yes Bank . But, this is a...
Unitech was the stock which was going at a speed of >400 KMPH in a road, where many many real-estate companies already driving, to win the race. The people on-board enjoyed the ride. Many people became MTM (mark to market) millionaires, especially the fully exposed people who had only 2-3 companies in their portfolio. Some people get on-board feeling...
I have selected another stock, which looks good to invest in. You must have wondering, why am I sharing only technology companies? Well, it is the sector which have fallen mostly.
I don't like to buy at highs. I like to buy at correction, when there is fear, when the weak-hands get panic and selling it. That's what many of the great investors...
You must have heard the words of great investor of all time.
Mr. Warren Buffett once said, “The first rule of an investment is don't lose . And the second rule of an investment is don't forget the first rule."
Losing money means, in simple terms means, selling at a loss . People get fearful and sell when the stock starts falling. There can be unlimited...
Wipro has been sold off (down 47% from the ATH) because of technology sector (NASDAQ 100) being selling off since the start of the year. Buying good companies at a discount is always a good idea.
So, I see a very good investment opportunity in this stock. Remember, investing is different from trading. There are only two scenarios in my opinion, either a...
1) BCG is a very good mid-cap stock for investing, based on my analysis. It has average EPS of Rs 4.40 for the last 6 years. It also has corrected enough to look good to value investors.
2) It's intrinsic value (IV) is Rs 184, if India 10Y Treasury yield of 6.1% is considered. I personally use Sir Ben Graham's formulae, in which he has put 10 Year...
UPL is a very good pick for investing, from Nifty 50 stocks.
1. It has an average EPS of Rs 29.50 since the last 6 years.
2. It is from the agriculture chemical sector, which is a good sector to invest in. The sectors I don't recommend are Aviation, Telecom, Etc.
3. It's IV is Rs 1390, if 29.50 EPS and 6.1% (India 10-Year Bond Yield) is considered....
Redington India is a good mid-cap pick considering it's fundamentals, very consistent EPS, and after a good correction.
It is a buy at current prices (Rs 126.55).
The logic is simple, if a company with good fundamentals available at a discount, then it's a perfect opportunity to invest.
Remember, never invest more than 10% of your capital in any...
Any stock can not sustain it's bullish behaviour, without a correction.
Reliance has to correct, before going up again. It is the proved nature of markets.
Why selling any stock is a good idea.
1. To buy it back at a lower prices,
2. To full-fill urgent needs of money,
3. To let the weak hands enjoy the euphoria and not to stay in the markets when...
Amazon has corrected enough to look attractive to value investors. VI basically mean they will look for:
1. Low P/E ratio,
2. An long term up-trending stock (Amazon is that),
3. Fear in the markets, Etc.
Investors like Warren Buffet doesn't buy when the market is at all time high and people think it will keep going up in a straight line.
He and other...
LICI has been hit hard for the mainly two reasons,
1. Previous performance of other IPO stocks such as Paytm, Zomato, Etc.
2. Current bearish sell-off (in over all global markets).
Investment Objective: If Nifty/Sensex give 10-12% annual average return, my goal is to beat the index. Means we will try to generate >12% annual return. We can include stocks...
Currently, Nifty is trading near very important levels. This was the important resistance (because of lot of consolidation happening between Jun-July 2021), which became a support after the breakout. It has been tested twice since the July breakout.
S&P 500 fell into bear market yesterday as far as daily close is considered. But, I am not convinced 100%...
Netflix has corrected almost 74% from the all time (swing) highs. This isn't new for Netflix. It had happen in the year 2011-12, when it corrected 82% from swing highs. It had moved >9000% since then (up to the latest swing high from Rs 7-8 price). Investing after a correction is a good idea, because it gives us more room for potential gains. And, there...
I want you to pay attention towards 3 arrows.
1. Black arrow: This candle had an increased selling volume (resistance), which was broken by 3rd weekly candle followed by 2 weekly candles of consolidation.
2. Blue arrow: This is the candle where bulls entered with approx double the volume and were able to close above the high of blue candle.
3. The rally...