oppn parties Beware of Fresh Highs in Stock Indices

News Snippets

  • Government to introduce PF for self-emplyed and gig workers
  • Crush at Puri Rathyatra leaves 2 dead and 78 injured
  • NEET-UG, marred in controversy due to pape4r leak, saw a huge increase in top scores as two scored 715/720 and 11.2 lkah candidates cleared the exam
  • India's first hydrogen-powered train will be flagged off by PM Modi from Jind in Haryana
  • Delhi HC asks the government to monitor Sona Wnagchuk's health regularly
  • TMC Rajya Sabha MP Koel Mallick resigns from her seat, leaves TMC. Mamata asks all those wishing to leave the party to do so before July 21
  • Calcutta HC says land deed is not a proof of citizenship. Refuses to provide protection to a man facing deportation on basis of land deed
  • Supreme Court tells the government to teach the third language in the 3-language formula in Class 6 and not Class 9
  • Government to take steps to boost liquidity for small businesses
  • RBI says that banks cannot sell seized assets back to the defaulters
  • Centre decides to take equity stakes in semiconductor startups
  • Markets remain flat on Thursday: Sensex closes just 1 point ahead and Nifty ended 5 point lower
  • BCCI:Selectors have possibly decided that Rohit Sharma will not be selected for ODIs after the Lord's game on Sunday
  • Japan Open badminton: P V Sindhu stuns world no. 5 Han Yue of China 21-16, 21-14 to enter the quarterfinals
  • 2nd ODI versus England: Indian batting fails miserably except Gill, Kohli and Iyer to score just 233 all out. England win by 4 wickets
Supreme Court clarifies that it has not issued a blanket ban on use of bulldozers, and they can be used after compliance with procedure laid down in civil laws
oppn parties
Beware of Fresh Highs in Stock Indices

By Slogger
First publised on 2017-10-17 08:37:22

About the Author

Sunil Garodia Holding an extreme view and carting the ball out of the park is what interests him most. He is a hard hitter at all times. Fasten your seatbelts and read.
Are the Nifty and the Sensex the true barometer of the Indian stock exchanges? Then how do you reconcile the fact that while the two indices broke fresh ground and registered new highs on Monday, the 16th of October 2017, the breath of the market was negative as more shares declined than rose? The NSE reported 813 advances and 920 declines while the BSE reported 1279 advances against 1420 declines on the day. Hence, an investor would be foxed if he buys some stock after careful research only to find that the price fell despite the Nifty and the Sensex riding high.

Investing in stock markets is becoming trickier by the day. A part-time player is more likely to lose money than make the promised big bucks if he dabbles half-heartedly in stocks. The main reason is that the stock markets are now, more than ever, being driven by a handful of players playing around with the stocks of a handful of companies. Even IPOs are becoming highly overpriced where companies are trying to squeeze out the maximum premium. Rumours and loaded tips rule the roost and gullible investors are burning their fingers.

The best option for investors is to either invest in blue chip companies on a long term basis or go for mutual funds that have a proven track record. That way, they will encounter less risk. If they wish to get into the action themselves, they would be well advised to start small by building a portfolio over a period of time. If one wishes to get rick quickly, the stock market is not an option. The best way to start is to first ignore all unsolicited tips and find good companies or mutual funds to invest in by spending some time researching and learning about track records of companies. Day trading is an absolute no-no for the uninitiated. Do not let the banner headlines of Nifty and Sensex hitting fresh highs get to your head. You are more likely to lose money if you rush into investing now.