Daily Big Picture – Key Composites Trade Flat; Broader Indices Extend All-time Highs

Today’s Action:

The major indices ended flat with the Nifty Midcap and Smallcap indices making a fresh all-time high.

Current Outlook:

  • Market environment conducive for new purchases, but remain selective.
  • Focus on fundamentally strong stocks breaking out of strong technical patterns.
  • Stay disciplined and exercise sound buy and sell rules.

Continue reading “Daily Big Picture – Key Composites Trade Flat; Broader Indices Extend All-time Highs”

Daily Big Picture – Markets End Positive on Upbeat Global Cues

Today’s Action:

The major indices recovered with good gains after last session’s slump. The NiftyMidcap and Smallcap indices outperform key composites.

Current Outlook:

– Market environment conducive for new purchases, but remain selective.

– Focus on fundamentally strong stocks breaking out of strong technical patterns.

– Stay disciplined and exercise sound buy and sell rules.

Continue reading “Daily Big Picture – Markets End Positive on Upbeat Global Cues”

Should you Average it Up or Average it Down?

MarketSmith India - Weekly Out Look

“If you let a stock go down 50% from where you bought it, you must make 100% on the next stock just to break even. Now, how often do you buy stocks that double in price?” –William J. O’Neil, MarketSmith Founder

Investors are often reluctant to sell when stocks go down in price from what they paid for them. To add to the harm, many investors tend to average down and buy more of the stock that already shows a loss. Our strategy turns the concept of averaging-down on its head, and we suggest adopting the pyramiding or the averaging-up technique. This strategy ensures that the losers are weeded out, and the capital is instead deployed to winning stocks – resulting in averaging-up your initial buy price. In general, three out of four stocks follow the market direction.

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Weekly Big Picture – Key Composites End a Choppy Week with Minor Losses

MARKET PULSE

Status: Confirmed Uptrend

Current Outlook:

  • Market environment conducive for new purchases, but remain selective.
  • Focus on fundamentally strong stocks breaking out of strong technical patterns.
  • Stay disciplined and exercise sound buy and sell rules.

Highlights:

Two up days, two down days

Continue reading “Weekly Big Picture – Key Composites End a Choppy Week with Minor Losses”