oday I would like to take you to the journey of an Auction House like Christies......
Let us Assume a Rare commodity like a Diamond is being Auctioned in the Christie house and because it is a Rare commodity many people from around the world have come to purchased that rare commodity...... millionaires...... billionaires want to somehow purchase that piece of rare commodity......
The base rate of that rare commodity is say 50 million US dollars.......
Now in the house of Christie the auction process starts to sell that rare commodity and the asking price starts from 50 million US dollars.....
The first bidder bids 55 million US dollars..... then the second bidder bids 60 million US dollars......and the auction process goes on for say another one hour or so and the last bid received for that rare commodity is 250 million US dollars......
Now if you notice that the base rate of that rare commodity was 50 million US dollars and the final bid received was 250 million US dollars.....
Now to note here and question yourself is was it worth buying that rare commodity at 250 million US dollars...... have the last bidder payed a exorbitant prices to obtain that commodity ......it is value for money by paying 250 million US dollars......did the last bidder payed so high a price for his greed to posses that commodity and satisfy his ego ... ...in future when he wants to sell will he be able to even recover his purchase price he paid of 250 million US dollars......
Now same example we witnessed of Corus ......JLR car company.....Novelis ACQUISITION......these acquisition were all purchases of Auction...... and the acquirer had paid exorbitant prices to purchase them.......and all the acquirers lost huge amount of money......there was no value left in the companies purchased because all the acquirers overpaid to purchase those companies.....
Same way in stock market..... which is a BIG AUCTION HOUSE......stocks like commodities are sold here everyday and there are thousands of participants to purchase them.....
Commodities like Bajaj Finance.....Eicher motors.....Page Industries at one point of time we're rare commodities and every one wanted to own them at whatever price......so in the Auction House the shares of these stocks at one given point of time went up to dizzy heights and to such a price that owning them made no sense and the buyer who bid at those high prices had only risk to pocket and value to loose.....I mean there was no value as compared to the price paid.....and this Auction House ie Stock Market have many big fishes which are just waiting silently to eat you up.......So be careful of these Big Auction House which bid prices to astronomical heights where it makes no sense to buy because in return you are getting High Risk and Low Value ........
[12:26 AM, 7/30/2019] Jiten Patel: So much destruction is still left in many Midcap and Smallcap stocks.......I think still the Midcap and Smallcap stocks will correct for next one year atleast......in between there will be many upside false rallies to trap the Innocent Investors...... whatever very few money is still left with the Investors to purchase Stocks at lower prices to Average their price will all be eventually lost in the coming one year time frame.....Yes......poor Investors will be tempted to average their cost at lower prices but it is going to be a trap and the smart INVESTORS will see to it that you are left with no money to invest and they will gaurantee that poor Investors lose all their money invested......
So from today lots of pain and fear and helplessness like situations is still left to arrive and thereafter the desperate situation arising to sell all your STOCKS.......
[12:30 AM, 7/30/2019] Jiten Patel: 11000 will be protected as of now and thereafter NIFty will again go up to 11550.....
But it is important to note is that not all Stocks will perform..... only selected few stocks will perform once the current correction will get over......so it is important to find such individual Stocks.......
If NIFty corrects to @9680 levels then the same will be called a Correction in the current long term uptrend market.......
But if Nifty corrects to 8250 levels then we are going to see another Short term bear market
But Midcap and Smallcap have a lot of Space to go down in a Crazy manner and both the Caps will be Completely Devastated and Finished and will not even see the light of the day......they will be permanently killed and still it looks like there is atleast one year of correction in Midcap and Smallcap still left.....
But there will be many bounce back on the way.....
It is my personal opinion and view only and not a recommendation to buy or sell and I reserved to be proved otherwise also.......
Let us Assume a Rare commodity like a Diamond is being Auctioned in the Christie house and because it is a Rare commodity many people from around the world have come to purchased that rare commodity...... millionaires...... billionaires want to somehow purchase that piece of rare commodity......
The base rate of that rare commodity is say 50 million US dollars.......
Now in the house of Christie the auction process starts to sell that rare commodity and the asking price starts from 50 million US dollars.....
The first bidder bids 55 million US dollars..... then the second bidder bids 60 million US dollars......and the auction process goes on for say another one hour or so and the last bid received for that rare commodity is 250 million US dollars......
Now if you notice that the base rate of that rare commodity was 50 million US dollars and the final bid received was 250 million US dollars.....
Now to note here and question yourself is was it worth buying that rare commodity at 250 million US dollars...... have the last bidder payed a exorbitant prices to obtain that commodity ......it is value for money by paying 250 million US dollars......did the last bidder payed so high a price for his greed to posses that commodity and satisfy his ego ... ...in future when he wants to sell will he be able to even recover his purchase price he paid of 250 million US dollars......
Now same example we witnessed of Corus ......JLR car company.....Novelis ACQUISITION......these acquisition were all purchases of Auction...... and the acquirer had paid exorbitant prices to purchase them.......and all the acquirers lost huge amount of money......there was no value left in the companies purchased because all the acquirers overpaid to purchase those companies.....
Same way in stock market..... which is a BIG AUCTION HOUSE......stocks like commodities are sold here everyday and there are thousands of participants to purchase them.....
Commodities like Bajaj Finance.....Eicher motors.....Page Industries at one point of time we're rare commodities and every one wanted to own them at whatever price......so in the Auction House the shares of these stocks at one given point of time went up to dizzy heights and to such a price that owning them made no sense and the buyer who bid at those high prices had only risk to pocket and value to loose.....I mean there was no value as compared to the price paid.....and this Auction House ie Stock Market have many big fishes which are just waiting silently to eat you up.......So be careful of these Big Auction House which bid prices to astronomical heights where it makes no sense to buy because in return you are getting High Risk and Low Value ........
[12:26 AM, 7/30/2019] Jiten Patel: So much destruction is still left in many Midcap and Smallcap stocks.......I think still the Midcap and Smallcap stocks will correct for next one year atleast......in between there will be many upside false rallies to trap the Innocent Investors...... whatever very few money is still left with the Investors to purchase Stocks at lower prices to Average their price will all be eventually lost in the coming one year time frame.....Yes......poor Investors will be tempted to average their cost at lower prices but it is going to be a trap and the smart INVESTORS will see to it that you are left with no money to invest and they will gaurantee that poor Investors lose all their money invested......
So from today lots of pain and fear and helplessness like situations is still left to arrive and thereafter the desperate situation arising to sell all your STOCKS.......
[12:30 AM, 7/30/2019] Jiten Patel: 11000 will be protected as of now and thereafter NIFty will again go up to 11550.....
But it is important to note is that not all Stocks will perform..... only selected few stocks will perform once the current correction will get over......so it is important to find such individual Stocks.......
If NIFty corrects to @9680 levels then the same will be called a Correction in the current long term uptrend market.......
But if Nifty corrects to 8250 levels then we are going to see another Short term bear market
But Midcap and Smallcap have a lot of Space to go down in a Crazy manner and both the Caps will be Completely Devastated and Finished and will not even see the light of the day......they will be permanently killed and still it looks like there is atleast one year of correction in Midcap and Smallcap still left.....
But there will be many bounce back on the way.....
It is my personal opinion and view only and not a recommendation to buy or sell and I reserved to be proved otherwise also.......
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