Re: Bloodbath on the market
RNRL and RPL are not good stocks. And the stocks that are indeed good like RIL etc you can't ask for better levels, in the market at some point you have to take a call on the fundamental value and then compare that to the market value and when you feel that the ratio is favour of the fundamentals you have take that risk of losing 5,10,15% and go out and buy. Have conviction in your analysis and the fundamentals of the company. Excesses will always happen in the market both on the upside and on the downside and to me this looks like an excess on the downside. Investors have to take advantage of these excesses, traders make their money on price fluctuations and volatility and as they say 'Those who live by the sword, die by it'.
perfect explaination.
It was well known fact indian markets were overstreched. since 2004 I am obsrving the phenominon. Fundametnally Indian story is good but the reflection on the stock market what i saw every year was psychological leading to more and more money coming in the process it moved ahead of time. so when its back to normal look for fundamental good companies chances are during this down they might be undervalued by the market.
RPL, RNRL I saw them moving like their is no tommarrow. I was always surprised what fundamentals are growing ever day it was just the future prospects but you can't expect to grow any thing growing 400% in quick time.
I braught RNRL at 90 and even at that time it looked not so cheap for me. I will not be surprised if it goes below that.
but i will definately buy fundamentally strong scripts who can atleast grow by 20% every year.
Remember
1. If you have lost money as investor : Equity is just another asset class of putting your wealth. Its more of risk management and asset allocation. so go back and evaluate your portfolio and take this down trend to buy more stocks if it suits your risk appetite and don't expect tooo much 20% value per year is good growth and its always achieved in long run.
2 If you have lost money as trader : Then you can find out the reason and learn from the mistake. but for me a smart trader has made money in this fall. If you lost you need to ask question whether you are a smart trader or not. most of will say bye to the market. but whatever the case a real dedicated trader will buy the market not bye.