How do we see market in 2017? Must read for every Indian Investor.
December
26, 16
How do we see market
in 2017? Must read for every Indian Investor.
Greetings
from Hitesh! It is our yearly ritual to talk about the market in next year.
Last time we did in November 2015. This time we have already done in various
posts. But to make it easy for the readers – we are presenting in one single
post. But before that let us look at 2016.
What we had said about 2016
way back on 5th November 2015? (Appreciate our accuracy and PRAISE
LORD for BLESSING US for right Intelligence).
2016 has a total of 9. 9 is a
number of LIBERATION (MOKSH). Man / Market and Machines will reach to their own
LIBERATION. If you see 2007 (another number 9), you may comprehend what we are
trying to convey.
(Mr.Modi
took away the MONEY and MAN REACHED MOKSH from MONEY!!)
We will see WAR / WAR LIKE
situations / Financial chaos particularly in USA and CHINA / Huge Volatility in
prices / Many bad news coming simultaneously.
(Look
at the last full year and you will agree that all the events had taken place.)
BUT this will not
affect Indian Market as negatively as perceived by your so called
experts!!
In fact, we will
have good rain fall / demand led by rural communities/ demand supported by
personal loans / drastic financial measures by Finance Ministry in coming
budget/ Pick up in Economic Growth led by DEMAND SIDE PUSH / Coming out of
hidden money in market – all will lead to over all TEJI in INDIAN MARKET!!
(Read
above. How accurate we were. The last one is fabulous – hidden money did come
out!!)
There will be an
overall optimism in the market. You will see GOLD moving to new high in 2016.
We had given a bold call to buy gold in March 2015 – our clients are buying every month in small
lots – they all will bless us in 2016.
(Gold made Rs.65000 in November, way ahead of
our target of Rs.40000!!)
OUR TRACK RECORD:-
From 2008 to 2016 – our track
record is in front of you. We are always way ahead then other experts in
reading the coming market trends, world events or just reading the economic
consequences of the policy decisions. Just to share a recent examples…..
On December 3, 16 - FIIs had not FORGIVEN
MR.OBAMA, Will they FORGIVE MR.NARENDRA MODI for NOTE BAN?
In the above post we had said we
see USD and CRUDE moving up!! Just see CRUDE MOVED to USD 55 after our post and
Govt is calculating crude prices of USD 55 to USD 60 for FY 2017-2018 BUDGET as
per today newspaper report!! Not a single expert was talking about it when we
talked.
On December 1, 16, we had said - Is India HEADED for MORE TAXES and
HYPER INFLATION?
Mr.Modi said the same thing in last week’s
SPEECH in Mumbai!! When we wrote above – many readers having a soft corner for
Modi – were unhappy with us. But NOW MODI is also saying what we told on on 1st
December!! Economy do not run on BHAKTI or AURA of a LEADER. It runs on MONEY
and MONEY is removed due to DEMONETISATION!!
Just read all the NEWS PAPERS in the LAST 7
days – various experts, including RUCHIR SHARMA of MORGAN STANLEY and STEVE
FORBES of FORBES magazine are talking about the same things, which we told you
would happen to Indian Economy. We were the first to tell you!!
What about market in 2017?
November 22, 16 – we wrote - December 2008 V/s. December 2016 – Same
SITUATIONS – are you ready to GRAB the OPPORTUNITIES?
In the same we had said – Market
will go up, up and up.
In our post - FIIs had not FORGIVEN MR.OBAMA, Will they FORGIVE MR.NARENDRA
MODI for NOTE BAN? – we had given logic why market will make new high.
1. FIIs STRATEGY:-
FIIs are STUCK. They can’t sell in one go.
If they sell market will hit lower circuit and it will make their job difficult
for further selling. They will play 2 steps up and 1 steps down strategy.
Slowly and gradually, they will take the market up and they will sell in one
go. They will have to repeat these steps. In the process – Market will have to
make NEW HIGH. (When Market makes NEW high – Mr.Modi can take CREDIT that due
to NOTE BAN – FIIs have taken the market up!!)
2. Mutual Funds and Domestic Institutions:-
Another reason is our mutual funds are flush
with CASH and they will buy all the sold stocks at throwaway prices. In
NOVEMEBR – they bought stocks worth of Rs.18277 Crs. So, their buying will
offset the selling of FIIs.
Recently LIC closed JEEVAN AKSHAY scheme,
which was giving 7.5% interest per annum. Early estimates show that LIC
collected approx Rs.1500 Crs on the day of closing i.e. 30th November.,2016.
During the last month it would have collected close to Rs.5000 crs in single
scheme only. LIC has to return this money only on the case of DEATH of the
policyholder. So, LIC will be the buyer at lower levels in market as always.
3. NEW INVESTORS:-
Most guys have deposited their CASH in the
BANK. Now, they will have no BUSINESS due to economic conditions and note ban
for coming 6 months. With the money in the BANK and their lively hood at the
stake – they will come to play in the share market. They will create new demand
of shares. So, share prices will move up.
How to play in 2017?
This is the
main point for all investors and/or traders. Most normal guys have a frame of
mind that if the market goes up – they will make money and if the market goes
down – they will not make money. The fact is – you will make money only and
only if your shares go up and not the market!!
It may happen
that market may move up and shares may not move at all or market may not move
up but your share move up. The challenge is to pick up the stocks, which are
likely to go up on their own strength.
In such case
the best strategy, which we recommend is as under.
Trade in
Stocks / Futures and Options, depending on your level of expertise in the market.
This will generate on an average 5 – 7% per month. From this trading profit invest
in long-term stocks.
In the above
strategy –
1. You will have
all your capital at your disposal for use at any given point of time.
2. Moreover, you
will invest only profit – so, mentally you become immune to the price movements
of your investment stocks. This will help you to hold your shares for a longer
period of time and you can multiply your capital at faster rate.
3. In case you
don’t want to invest for long term – you have at least 40% return post TAXES to
run your house. For a very small investor who invests say Rs.10 lakhs in
trading – can make Rs.4 lakh per annum after TAX. Don’t you think this is a
decent amount to run day today expenses for a normal middle class family?
4. In all the
above cases – you have nothing to do with the MARKET MOVING UP or DOWN. Your
goal is to generate MONTHLY TARGET!! If it goes up you will buy first and sell
later and if it goes down – you will sell first and buy later.
5.
The guys who invest real big
amount - have above thinking before they invest. They want to make money in
spite of the market movement in any direction. Over the years - we have
mastered the same concept from them
What NEXT?
Our BLOG is
the best testimonial for our Skill Sets / Vision and Pro-Active Advice.
If you want
to learn trading / investment or just want to make tons of money – just join
us.
Wish you all a very HAPPY WEEK
AHEAD.
Live With Passion…Invest With Passion.
Hitesh Parikh.
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