Building Up A Portfolio At 7000 Level
Hi All,
At a level where the Sensex and Nifty Trades at an all time high, you would be wondering what I should do at this level?
Is this the end or even at current levels would it be a good buy or what should be my target?
A very plain answer to this would be it is still safe to buy. Now why do I say this?
Around a year back at the same time the Sensex traded at a level of 3000. Now it trades at a level of 7000.
However closely monitoring the PEs of the stocks as well as the sensex, would show that although the sensex and the various stocks have increased, the PE has been considerably low. At the level of 3000, the PE was aroung 16 level and now also the sensex PE is 15.3.
This clearly shows that the Sensex has not increased blindly and neither is it overvalued now. The sensex has increased with a good increment in Earnings and a high EPS has kept down the PE ratio.
Okay now, lets see what are some of the factors that can slow down the Economic Growth:
1> Monsoon Conditions
2> Oil Prices(I believe currently around 59$ barrel-plz check the exact figures)
3> Results and future prospects that the frontline counters show
4> Political Issues(which should not play a grand role)
Now what should I buy, will every stock increase?
Yes if the sensex increases tremendously, then I would say 80% of the counters will increase. It is important at this level that you "Choose the best and Ignore the Rest".
1> Entry should be made in a counter in 3 sets.
2> Do not put all your eggs in one basket
3> Do not overestimate? Read, hear analyse youself before you make a decision
4> Enter into stocks that are fundamentaly strong, or tend to be fundamentaly strong. (I am not saying do not buy penny stocks etc)
5> Do not be driven by a single day's chart, check past records and performace over the last few quarters and last few weeks.
Please remember the above and you should be able to do well off.
Any suggestions are always welcome.
Hi All,
At a level where the Sensex and Nifty Trades at an all time high, you would be wondering what I should do at this level?
Is this the end or even at current levels would it be a good buy or what should be my target?
A very plain answer to this would be it is still safe to buy. Now why do I say this?
Around a year back at the same time the Sensex traded at a level of 3000. Now it trades at a level of 7000.
However closely monitoring the PEs of the stocks as well as the sensex, would show that although the sensex and the various stocks have increased, the PE has been considerably low. At the level of 3000, the PE was aroung 16 level and now also the sensex PE is 15.3.
This clearly shows that the Sensex has not increased blindly and neither is it overvalued now. The sensex has increased with a good increment in Earnings and a high EPS has kept down the PE ratio.
Okay now, lets see what are some of the factors that can slow down the Economic Growth:
1> Monsoon Conditions
2> Oil Prices(I believe currently around 59$ barrel-plz check the exact figures)
3> Results and future prospects that the frontline counters show
4> Political Issues(which should not play a grand role)
Now what should I buy, will every stock increase?
Yes if the sensex increases tremendously, then I would say 80% of the counters will increase. It is important at this level that you "Choose the best and Ignore the Rest".
1> Entry should be made in a counter in 3 sets.
2> Do not put all your eggs in one basket
3> Do not overestimate? Read, hear analyse youself before you make a decision
4> Enter into stocks that are fundamentaly strong, or tend to be fundamentaly strong. (I am not saying do not buy penny stocks etc)
5> Do not be driven by a single day's chart, check past records and performace over the last few quarters and last few weeks.
Please remember the above and you should be able to do well off.
Any suggestions are always welcome.
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