Friday, April 27, 2018

Very tough correction happening...from Jan 2018 till April 2018

yes...it is becoming extremely difficult and tough day by day to guess when the ongoing correction will stop or is it over... after making a lifetime high of 11172 nifty corrected till 9950 and from the lows it is @10700 today... So leaving aside the difficult task of predicting whether the nifty correction is over for now i will look the bigger picture of the stock market...Yesterday i asked few of my brokers and the answer i got from them was that the market participants are in fear mode and afraid that the markets will still correct from here onwards...see i dont deny their anticipation but the bigger picture is that we are still in the bull market and it is intact because as long as there is fear... doubts ...uncertainty...boredom ...in the minds of the market participants it shows that the bull market is still fully intact...the day all the above emotions are taken over by overconfidence...greed ...thrill.... excitement...and when certainty will be the call of the day that will be the day one has to be cautious and fearful...so till that time actually comes enjoy the bull market till we enter the emotional phase of Euphoria...

Such Corrections are very difficult to understand...Read the Article Boiling Frog Syndrome and you will understand what i am trying to say...

The above are my personal views and opinion and i reserved my right to be proved wrong and the above article is not a recommendation to buy or sell...Also i am not a certified financial advisor...

Tuesday, April 17, 2018

Sun Pharma...Drreddy...Lupin entering the last phase of Bear Correction.....

Finally the external noise in the pharma sector is dying a slow death...Confused arent you...yes...what i mean is that the interest in the pharma sector is dying a slow death with Retail Investors...Speculative traders and especially with the business channels losing interest in the pharma sector...The hulla bulla of the outside world have vaporised and vanished for sure is my gut feeling but to note that we still might see the final fall...maybe a new lifetime low which might happen between August  and October 2018 ...but i am surely and definitely convinced that the correction is still not over...it can be priced wise or Time wise or Both....Assuming EPS of 22/ to 25/-- for the year 2021/22 and a PE of 15...the price works out to 330/- to 375...and also few bad quarters can see the price of Sun pharma going down to 260/-...but 260/- is the worst basis price and when the pharma sector going through its worst days ...months....years...We have already entered the 4th year of correction from life time high prices...and i feel that one more year of correction price wise is left just incase but Timewise correction might go on for next 2/3 years...in the time wise correction all the remaining left out participants like the value investor...patience investors...their back bone will be broken by holding the stock for years and the sun pharma...drreddy ...lupin stocks doing nothing and going no where price wise and these will be the last lot who will sell all their shares because BOREDOM will get the better of them...

Also when the attention of the Market participants is 100% totally diverted and concentrated towards other performing hot sectors and when the pharma sector is totally neglected it is also a good time to realise that the days of investing in the pharma sector are not far away...

YES once the boredom gets the better of the Patience Investor and so...Finally the days have arrived to increase your exposure in the Pharma sector and that opportunity will not arrive before the year 2021 to 2023....also by that time period the RISK/REWARD ratio will be 10/90 in favour of long term Investing

NOTE: The above article is my personnel opinion and not a recommendation to buy or sell...

Monday, April 16, 2018

Is the Bull Market Trend Over...

FAQ today by most of the market participant ...Is the Bull Market Over...

No not at all and I dont think so...infact because of the present circumstances and situation we are going through in regards to Geo political tension of USA firing 100 Missles on Syria and because of uncertainty and fear prevailing today in the stock markets around the world as per the reaction of market participants it shows that we are not even in the middle of the bull market journey...because today the market participants are showing no commitment at all and market participants wants to be away from the markets by the time all the air of doubts are clear...Psychologically the above reason plays an important role in the stock market...i mean if such a situation arises when we are at the top of the bull market and at the last phase of the bull market journey the market participants will ignore such news of missles fired by USA on Syria and ignore the news completely as if nothing has happened and will keep on actively trading in the stock market....I mean they will all say that the news are Discounted...and will show no signs of Fear Uncertainty and Doubts...So until they are fearing about the next Drop in the markets and show signs of Doubts and Uncertainties till that time it is assumed the stock market EUPHORIC TOP is not reached ....
Corrections will keep on happening at Intervals along the path of the current Bull Market Trend ...

The above article is not a recommendation or suggestion to buy or sell and are my personnel opinion only...