BULL RUN TO CONTINUE

experts see Nifty at 12K by end of 2018
All experts agree that India is now in a bull market phase and that a person with a five-year view should not be worried about investing in stocks

The 50-share NSE Nifty index future & option finally managed to hit a fresh record high of 11,172.20 on the day of expiry of July derivative contracts while the 30-share BSE Sensex crossed the 37,000-mark.

This was the Nifty's 14th record high in 2018 and the Sensex's 20th, but the Nifty took 123 sessions to reclaim its earlier record.
The Sensex's and Nifty's rallies of 8 percent and 6 percent, respectively, was entirely driven by domestic inflows and not by foreign investor money.
However, both benchmark indices had fallen more than 10 percent in the correction that took place in February and March, after the Union Budget.

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market value

Market  open

Benchmark indices have made a flat start on Thursday morning, with the Sensex hitting a fresh record high, but the Nifty is still a few points away from the fresh record high.

The Sensex is up 43.42 points or 0.12% at 36901.65, while the Nifty is up 9.50 points or 0.09% at 11141.50. The market breadth is positive as 313 shares advanced, against a decline of 131 shares, while 37 shares are unchanged.

Among sectoral indices, PSU banks, FMCG, infra and auto names are trading strong, while weakness is visible in the pharmaceuticals space. The Nifty Midcap index is up over 0.10 percent. 

Shares of Larsen & Toubro are up over 1.5 percent after its June quarter numbers, while SBI and Bharti Airtel are trading higher. Sun Pharma, Kotak Mahindra Bank, Bharti Infratel and Tech Mahindra have lost the most. 

In case of global markets, Asian stocks edged higher on Thursday, taking comfort from gains on Wall Street after US President Donald Trump and European Commission President Jean-Claude Juncker agreed to work toward eliminating trade barriers on industrial goods, Reuters reported. 

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knowledge

                     Highlights of the morning

 Sensex hit a fresh record high; hits key milestone for the 7th time     in 11 trading sessions.

Nifty hit its fresh milestone, surpassed earlier level of 11,171 and hit an intraday high of 11,179.40.

 It has taken a total of 123 sessions for Nifty to be back at record high figure.

Jul 26, 11:37 AM (IST)   

Buzzing: Shares of Ambuja Cements gained 7.6 percent as company posted strong numbers in the quarter ended June 2018.

The company's Q2 standalone profit rose 27.3 percent to Rs 499 crore and revenue increases 5.7 percent to Rs 3,016.9 crore.

The Competition Commission of India (CCI) had imposed a penalty of Rs 1163.91 crore on Ambuja Cements. On appeal by the company, the National Company Law Appellate Tribunal (NCLAT) in its order passed on Wednesday has upheld the said order.

The company is yet to receive the order of the NCLAT, it believes that on merits it has sufficient grounds for a successful appeal and intends to file the same with the Hon'ble Supreme Court, company said in release. 

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Nifty 50

Introduction

In the United States, the term Nifty Fifty was an informal designation for fifty popular large cap stocks on the New York Stock Exchange in the 1960s and 1970s that were widely regarded as solid buy and hold growth stocks, or "Blue chip" stocks. 

What was the 'Nifty 50'

The Nifty 50 was a group of 50 stocks that were most favored by institutional in the 1960s and 1970s. Companies in this group were usually characterized by consistent earnings growth and high P/E ratios.

The NIFTY 50 is a diversified 50 stock index accounting for 12 sectors of the economy. It is used for a variety of purposes such as benchmarking fund portfolios, index based derivatives and index funds.

NIFTY 50 is owned and managed by India Index Services and Products Ltd. (IISL).  IISL is India's specialised company focused upon the index as a core product.

·         The NIFTY 50 Index (future  and option) represents about 62.9% of the free float market capitalization of the stocks listed on NSE as on March 31, 2017

·         The total traded value of NIFTY 50 index constituents for the last six months ending March 2017 is approximately 43.8% of the traded value of all stocks on the NSE.

·         Impact cost of the NIFTY 50 for a portfolio size of Rs.50 lakhs is 0.02% for the month March 2017. NIFTY 50 is ideal for derivatives trading.

 

Characteristics

 

The stocks were often described as "one-decision", as they were viewed as extremely stable, even over long periods of time.

The most common characteristic by the constituents were solid earnings growth for which these stocks(options) were assigned extraordinary high price-earnings ratios. Fifty times earnings, far above the long-term market average, was common.

 BREAKING DOWN 'Nifty 50'

The Nifty 50 stocks got their notoriety in the bull markets of the 1960s and early 1970s. They became known as "one-decision" stocks because investors were told they could buy and hold forever.

Examples of Nifty 50 stocks included General Electric, Coca-Cola, and IBM. However, part of this list included companies that have been troubled in the last decade, such as Xerox and Polaroid.

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Profitable Investment Strategies

10 profitable strategies (tips) of investing in stock market to become rich

1. Rome was not built in a day: 

“The stock market is designed to transfer money from the impatient to the patient.” An investor needs to give time to his stocks to compound over the period.

2. Chase the value:

“The stock market is filled with individuals who know the price of everything, but the value of nothing.”

3. Invest in future:

Market is always future-oriented Hence it discounts the events of the future in the current price.

4. Analyze the past:

A strong growth in the past gives confidence for the future prospect. 

5. Time the market: 

It is important to determine the correct price to enter the market. Stock before investing should be compared with its peers to determine price attractiveness.

6. Understand Yourself: 

Before understanding anything or everything, understanding oneself holds a sparkling value. 

7. Understand the Market: 

One should not mix up the elements of trading with investment. 

8. Learn from Winners: 

Greatness is not just winning. It is picking up learnings along the way irrespective of the outcome. 

9. Plan, analyze, and conclude:

To become a successful investor or trader, one must first plan the trade/investment. 

10. Take Your Losses Quickly and Your Profits Slowly:

It is better to understand losses more than profits, because losses will teach you how exactly should you play on the field.

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Strategic Stock Market Investment

What Investment Strategy Is Best In This Stock Market?

Bearish periods are notorious for upending traditional investment strategies. Therefore, maintaining bullish attitudes and approaches is usually futile in a downturn. Instead, we need to adopt a bearish investment strategy to succeed in this stock market.

First: Be fast.

Downturns occur quickly. Therefore, investment success requires speedy shifts. 

Second: Reject “sophisticated” risk reduction strategies.

The key problem is trying to allay down market worries while staying fully invested.

Third: Invest in some cash.

When stocks or bonds produce losses, cash is the clear winner. Additional benefits from holding cash are:

• A calmer demeanor that allows making better decisions and avoiding emotionally driven mistakes
• The funds for buying attractively priced investments

Fourth: Reduce importance of stock fundamentals.

In normal times, forward earnings and growth potential are important fundamental stock measures. 

In bearish times, however, they become weak – not because they are ignored, but because the concerns and uncertainties around the fundamentals reduce confidence in the numbers, themselves.

Fifth: Avoid screening for stocks to buy.

There are insurmountable problems to performing screens in downtrends.

Earnings and growth data are unreliable

Higher dividend yields (currently being used in articles recommending stocks) are questionable

Low price picking has bad rationale

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Strategic Investment in Stock Market

IDEAL STOCK INVESTMENT STRATEGIC 

Some of these are simple: The Dogs of the Dow strategy, for example, is so easy that it literally takes a few minutes to learn how the system works. Growth and value investing, on the other hand, are complex – and these types of investors have to put in significant time to learn about valuation, financial ratios and the like.

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