As discussed in my previous post Nifty still holding 11,420, so it might still rally till 11,700. This could quickly change if China back peddles on it’s trade negotiations with US.
The reason why I am yet to provide a recommendation is I am still riding my long positions that I have taken in past. Also market is over brought and not feasible to make an entry now.
Today I would like to explain the type of stocks I would like to research and buy :
1. Small & Midcaps – These are small aggressive new companies growing very fast.
2. Nifty 50 legends – These are fundamentally strong companies that have good returns over equity for the past 5 years. These companies aren’t likely to go out of business soon.
3. Cyclical stocks – These stocks move up during a particular period of an year. Trading them during their cyclical period would provide immense profits.
4. Contrarian – These stocks are completely out of favour with temporary depressed periods. Buying them at reasonably low price and watching them grow is what I like to do.
5. Stocks below book value – These stocks share prices are less than there assets. These stocks are usually ripe for a takeover and provide excellent results.
Now that we know the type of stocks I would like to buy. The best thing required now is patience, we wait till a stock catches my eye at the right price. Till than shoot any queries below.
“Most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can’t buy what is popular and do well”.
– Warren Buffett
ArthaNiti 