Since the last few months we have been hearing from a lot of people that markets are at their all time highs and that they will enter when the markets correct a bit. Let me show you with some live examples why doing so is a futile exercise.
On 1st April’21, Nifty started this financial year at around 14850 (which was also near all time high), today it is trading around 15700. This is almost a 6.5% move in 3 months. Now, bears might argue that these gains will become irrelevant if the markets correct 15-20%. To explain why even anticipation of a 15-20% correction should not prevent you from buying good stocks, let me share three more images of companies we had recommended and are still holding.
Acrysil was trading around Rs 320 in April and currently at Rs 614/-
Ruchira was trading around Rs 64 in April currently at Rs 97/-
Kaveri Seed was trading around Rs 520 in April currently at Rs 720/-
Now, tell me one thing, if your prediction is right and markets do correct 15%, do you really think that you will be able to buy Acrysil cheaper than Rs 320 or Ruchira cheaper than Rs 64? And even if you do get it 10-20% cheaper, are you really willing to risk a 90% gain over an extra 10-20% based on luck?
Maybe, if you are very lucky you might even get that opportunity but we do not want to invest our money purely based on luck.
The idea is fairly simple: buy a stock if you can prove to yourself that it is available at a bargain and has a good upside potential based on its financials and growth story.
We currently have a list of stocks that based on our calculations are trading at reasonable valuations and have good upside potential from their current levels. We do not think that Nifty being at its all time high is a good enough reason for us to not buy into those stocks and miss that opportunity.
At any given time the rule stays the same. Stay at least 75%-85% invested in the markets.
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Disclosure: This is not a recommendation to buy/sell any of the stocks mentioned above. Out of the stocks mentioned above, I have personal investments in Acrysil and Kaveri Seed.
Research Analyst Details
Name: Ekansh Mittal Email Id: [email protected] Ph: +91 727 5050062
Analyst ownership of the stock: In Acrysil and Kaveri Seed
Details of Associates: Not Applicable
Analyst Certification: The Analyst certify (ies) that the views expressed herein accurately reflect his (their) personal view(s) about the subject security (ies) and issuer(s) and that no part of his (their) compensation was, is or will be directly or indirectly related to the specific recommendation(s) or views contained in this research report.
Disclaimer: www.katalystwealth.com (here in referred to as Katalyst Wealth) is the domain owned by Ekansh Mittal. Mr. Ekansh Mittal is the sole proprietor of Mittal Consulting and offers independent equity research services to investors on subscription basis. SEBI (Research Analyst) Regulations 2014, Registration No. INH100001690
The views expressed are based solely on information available publicly and believed to be true. Investors are advised to independently evaluate the market conditions/risks involved before making any investment decision
A graph of daily closing prices of securities is available at www.bseindia.com (Choose a company from the list on the browser and select the “three years” period in the price chart
This report is for the personal information of the authorized recipient and does not construe to be any investment, legal or taxation advice to you. Ekansh Mittal/Mittal Consulting/Katalyst Wealth is not soliciting any action based upon it. This report is not for public distribution and has been furnished to you solely for your information and should not be reproduced or redistributed to any other person in any form. This document is provided for assistance only and is not intended to be and must not alone be taken as the basis for an investment decision. Ekansh Mittal or any of its affiliates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Neither Ekansh Mittal, nor its employees, agents nor representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost revenue or lost profits that may arise from or in connection with the use of the information. Ekansh Mittal/Mittal Consulting or any of its affiliates or employees do not provide, at any time, any express or implied warranty of any kind, regarding any matter pertaining to this report, including without limitation the implied warranties of merchantability, fitness for a particular purpose, and non-infringement.
The recipients of this report should rely on their own investigations. Ekansh Mittal/Mittal Consulting and/or its affiliates and/or employees may have interests/ positions, financial or otherwise in the securities mentioned in this report. Mittal Consulting has incorporated adequate disclosures in this document. This should, however, not be treated as endorsement of the views expressed in the report.
We submit that no material disciplinary action has been taken on Ekansh Mittal by any regulatory authority impacting Equity Research Analysis.
Disclosure (SEBI RA Regulations)
Whether the research analyst or research entity or his associate or his relative has any financial interest in the subject company/companies and the nature of such financial interest – Yes, in Acrysil and Kaveri Seed
Whether the research analyst or research entity or his associates or his relatives have actual/beneficial ownership of 1% or more securities of the subject company (at the end of the month immediately preceding the date of publication of the research report or date of the public appearance) – No
Whether the research analyst or research entity or his associate or his relative has any other material conflict of interest at the time of publication of the research report or at the time of public appearance – No
Whether it or its associates have received any compensation from the subject company in the past twelve months – No
Whether it or its associates have managed or co-managed public offering of securities for the subject company in the past 12 months – No
Whether it or its associates have received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past 12 months – No
Whether it or its associates have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past 12 months – No
Whether the subject company is or was a client during twelve months preceding the date of distribution of the research report and the types of services provided – No
Whether the research analyst has served as an officer, director or employee of the subject company – No
Whether the research analyst or research entity has been engaged in market making activity for the subject company – No