We try to gather information from the management regarding what goals and preparations led them to this outcome and if other companies are posing a threat with rising earning ratios. This also enables us to follow news and the perspectives of important managers of leading organizations.įor instance, an IT company reported positive results. Though we firmly believe that leading stocks in sectors are typically overvalued, we cannot ignore the attraction of including leaders in the observations. This helps investors follow their investments by performing sector rotation. Investment is similar to nurturing flowers on a plant and designing a garden based on its cycle.Īlthough this cannot be timed, but by carefully observing the sectors, we can get some ideas where smart money is shifting.Īs a research analyst and smallcase manager, we constantly provide the general public with analyses of FII/FPI and DII data. Understanding The Data Published On NSE Website Market emotions get triggered and long term investors have no hurry to participate in buying because they know they have booked partial profits and they also know the price where they can average their positions. But a lot of people want to ask why the market fell. Role of News: This trigger comes into play because new investors are browsing content and only a few dig deep. So there will be a considerable amount of selling by long-term investors and this leads them to a new trigger that is News flow. They have a very small share in buying and that too because of emotions. Transactions result from this worry of missing out. When the market reaches a swing high, investors fear losing the profit and new investors rush to join so that they do not lose the rally. Participants in the market and the market are both emotional. In this manner, we were able to identify the stock that experienced investors were interested in for the long term. If the cost has increased since this volume, it indicates that many more people are participating in this journey. This pushes you to think rationally because someone who has taken a big position, must have examined the business's finances. One should always take care of every penny one has invested, so try to figure out what was the price at which large volumes emerged. We always start our research reports with this section because we want our investors to fully understand the firm before making an investment. To begin with, let's understand what the management will do and what their goals are for the business.
0 Comments
Leave a Reply. |