Stock Ideas That Can Give Solid Returns In This Market
Should I be worried about the stock market? The answer is big – Yes and even professionals of Shyam Advisory feel so. Due to the corona virus pandemic, over the last few months, the equity market witnessed a steep rise and fall. This situation is not only for the Indian stock market but for the rest of the world also. Even the Asian and European markets registered heavy losses over the global economic fallout. This is a bit of concern. However, market experts feel that this crisis will come to an end soon but investment in stocks should be done wisely.
The future of the global and domestic market is unpredictable. The hopes in the equity market are slowly dwindling. While traders are making money from small targets like1-2 day investment, but investors who look forward to long-term investment plans are greatly worried. Some investors are even thinking of selling their stocks, but doing so would be a wrong move according to market experts. They are ready to help investors with some valuable stock tips and share market tips. Rather than selling the stocks, they are insisting long-term investors invest in quality stocks that promise solid returns.
Investing In Stocks Is a Good Idea Right Now
Imagine the scenario. Your friend advises you to invest in some stocks. You might wonder whether it would be wise to invest in this volatile market. If you are new to investing, having this question is quite obvious. However, regular investors will know that volatility is a part and parcel of the share market. But the present scenario is a good time for purchasing stocks that have high valuation but at a low level.
Market experts and financial planners want to point out that investors shouldn’t panic. Economy downfall or high inflation or bad IIP numbers can make things worse for the market, but staying calm and taking the right decision is important. Market analysts are urging equity investors to switch towards the large-cap and multi-cap stocks. Plenty of stock options are available in the market. So before investing in them, getting some stock option tips from the analysts is recommended.
Intraday Trading or Long-Term Investment
New investors often face a dilemma. They don’t know whether they should go for cheap stocks or high-quality stocks. Also, they wonder whether intraday trading or long-term investment would be a better option.
However, when investing in stocks, one should look beyond the price factor. They should consider the company and if it holds the potential to grow or not. One should try to study and see if they would get good returns from it or not. In case, you don’t have much idea about the stock market, market analysts and financial planners like Shyam Advisory would help you out.
Intraday Trading
First-time investors can consider intraday trading. Intraday trading requires buying and selling stocks within the same trading day. If you are going for intraday trading, keep in mind some intraday tips. The aim is not to invest in stocks, but to make profits by keeping a tab on the stock figure moves. Thus, traders can make profits by making use of stock price fluctuations.
One important tip related to the intraday trading is that as the stocks are purchased and sold on the same day, all orders are reversed before the closing of the market with the hope of gaining profit.
Usually, a trader going for intraday trading follows some trading tips. They are:
• Focus on flawless execution, which means to buy as close to support levels and even selling the stocks as close to the resistance level.
• Function with proper discipline and trading plan.
• Trading should be done always with a positive risk-return trade in mind.
• Expectations should be realistic.
Market experts and financial analysts feel that intraday trading is apt for those who have enough time to observe/ watch the market and the trades. Intraday trading also promises of high-returns but the risk is also very high. In short, intraday trading is not for those who do a 9-5 job and can’t just get time to focus on the market during the trading hours.
One of the most valuable intraday tips for investors is to invest in stocks with a lot of liquidity, such as large-cap stocks. Doing so won’t affect the price of the stocks, irrespective of the trades.
Long Term Investment
Don’t worry, if you can’t devote some time to the stock or trade market. You can easily go for long-term investment plans.
What is Long-Term Investment?
In share market investment, more than one-year investment is regarded as a long term investment. However, for the stock market, the situation is slightly different. The investment plan for 7 years and above is considered to be a long-term investment. One thing that needs to be kept in mind is that a long-term investment is slow. So if it is given some time, it might give some great returns and profit.
Which Stocks to Go For?
Don’t have any stock ideas? Need some solid stock option tips? Don’t worry. Talk to the professionals of Shyam Advisory and they will guide you on this matter.
Without further ado, let’s take a look into some stocks that’s worth investing for the long-term.
Best Long-Term Stocks
DPZ
Thinking of long-term investments? Apple (AAPL) will strike your mind. Why? During 2004, stocks of Apple witnessed a spectacular growth, due to its superb products. But investing in Domino’s Pizza would also be a wise decision. Well, Domino’s Pizza is a large pizza company m which started its operation with just one store. But with time, it has expanded its stores worldwide. Now, it has around 17000 stores all over the globe.
If one takes a look at the stock chart between these two companies, one would see that the stock of DPZ is over 5000%; whereas for AAPL IS 1500%. So investing in DPZ stocks would be a good decision.
State Bank of India
You can invest in this stock. Even if Nifty remains on the downside; still, the stocks of State Bank of India remains in a better position.
Kotak Mahindra Bank
In terms of market capitalization, Kotak Mahindra Bank is the third-largest bank. It comes after HDFC and ICICI. This bank earned its position as the top banks in India because of its fast growth. Taking into consideration the performance parameters of a bank, Kotak Mahindra Bank stands tall. It has witnessed growth across all business fronts; hence, it’s market penetration is multifold. So investing in them would be a great idea.
Asian Paints
There is no denying that Asian Paints (APL) is one of the largest paint companies in India. Unlike cheap stocks, this is a quality stock. Stocks of APL reported a healthy CAGR of 19% over Financial Year 2019-22E because of its strong brand position and also for being a leader. The wide distribution network of this brand and its improved operating margin can easily provide a good return of investment. Moreover, it has always remained debt-free and it is funded by equity.
Tata Steel
Over the last couple of months, the stocks witnessed a price correction. It got corrected from 30% of its earlier resistance level. For the short-term span, the stocks of Tata Steel are sold at a price below the true value; whereas, the daily or weekly patterns point out a huge chance of price reversal from the present situation.
Bajaj Finsery
Bajaj Finsery started to offer excellent returns over the last few years. In 2020, the stocks were traded at Rs 350. Now, the value of the stock has reached Rs 7500. Their job is to offer credit or loan for appliances. They have become an integral part of all retail and e-commerce stores. They aim to make the shopping experience of customers hassle-free. The company faced success because of its innovative credit style it offers to the customers. The business model seems to be long-lasting and it’s going to grow in the present Indian economy.
Nestle India
Nestle India Ltd (Nestle) is a manufacturer and sellers of a wide variety of food products, like Milk, Prepared Meals, Nutrition, Powdered as well as Liquid Beverages and more. So investors who are looking forward to long term investment can ride on the back of this brand. Being a reputed brand, it’s going to grow even more. Thanks to its wide distribution network and wide range of product launches. Hence, investing in this company stock would be a wise decision.
HDFC Bank
It is considered as one of the top private sector banks. However, those who are planning to invest in the stocks of this bank should do when its target price is between Rs940-950 and having a stop loss of Rs 840. Studies have shown that people take a huge interest in buying stocks of HDFC as its returns are highly favorable.
Hindustan Unilever
Hindustan Unilever Ltd (HUL) is a well-known company that is associated with the manufacturing of branded, as well as packaged FMCG products. Market analysts expect that HUL might report a strong bottom-line CAGR of 12% over the FY2019-22E because of its healthy growth.
Tata Consultancy Services
Tata Consultancy Services Limited is one of the largest IT sector companies in India. The market value of this company crosses $100 billion. Over the past years, it witnessed double-digit growth. Investors might think about whether it would be wise to invest in the stocks of TCS, as it hasn’t reached the saturation stage. However, market experts feel that as the company already reached double-digit growth, investing in their stocks won’t be a wrong move.
It’s a great risk-free investing option. The whole world is moving towards digitalization and computing technology. This has increased the demand for IT services. Hence, IT services are bound to face growth in the coming years.
Infosys
Infosys is the second-largest IT firm, right after TCS. Around 60% of its revenue is from the US; whereas, from India, it’s 3% and from the rest of the world is 37%. In India, the market for digitalization is on the rise. Hence, for investors, IT firms like Infosys can give them great returns. The market share might have seen a downfall, due to the management issues of the company; still, they offer a chance of good returns.
Although there are hundreds of stock options available in the market, investing in the right one is equally important. Hopefully, this article would help investors to make some wise decisions. In case, you are looking for some more stock tips or Nifty option tips or share market tips, give us a call. We would gladly help you out.
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