Harshad Mehta – the name is enough for teji in 2020-21 also. Believe it or not.

10^th June 2021

Harshad Mehta – the name is enough for teji in 2020-21 also. Believe it or not.

Dear Fellow Travellers,

Namaste! Reading the title of my post – one may think I am joking with the readers. Everybody knows that Harshad Mehta is no more and how he can affect the teji in 2020? In 1992 – Harshad Metha was present to run the market. In October 2020 – Harshad Mehta Web Series was launched and it has fuelled the sleeping ambitions of Middle-Class people to come to the market.

Let me share two important pieces of data to bring home the point.

 

1.   Retail Participation in the market: - Out of every Rs.100 trade that is happening in the market Rs.45 is contributed by the Retail guys. Just to give you the perspective, in 2019/2020 – NSE average daily turnover was Rs.50 lakh Cr in cash Equity segment. It has gone up to Rs.80 lakh Cr per day or more. This is just the cash segment. I am not adding futures segments and other segments or BSE turnover or MCX turnover.

 

It means Retail guys have added Rs.30 lakh crs per day in Nse cash segments only. Thanks to COVID and lockdown – retail guys have moved towards the stock market as this was the only business they can do sitting at home.

 

2.   Share of Top 100 stocks in the Market Teji: -

As per the study share of the top 100 shares in market trading were 87% or more in the last year and it has come down to 50% or less. This explains that why the B group and Z group and penny stocks are moving. Stocks without fundamentals are hitting the roof and people who have bought them are thinking they are SMART INVESTORS.

Have you heard about a Blind Husband and a Dumb Wife?

This is a very dangerous combination. But in practical life husband will feel peace at home and a wife will feel the husband is loyal as he is not seeing any other woman. So, in the initial stage, both will feel happy and bless their luck for getting together.

As time passes – they will come to know the other sides of the problems. They both will be liability for each after the initial honeymoon period.

The same way small investors buying kachra shares is a honeymoon in the initial phase and loss of capital of lifetime in the later stage.

I am worried about the plight of small guys. They have lost their job/business or their job or business has been affected their economic condition severely. As per CMIE in the current lockdown, 80 lakhs to 1 Cr people have lost the job. I am not considering the businessmen’s loss. Now, these people come to the market with whatever little capital they have to earn their bread and butter. I am sure going forward – most will lose their last shirt also.

Next Major Challenge for Modi Ji: -

The way business is diverted to the organized sector – a lot of middle-class businessmen will suffer huge losses in their business. This will increase the number of poor people in India and increase the economic imbalance. This will become an issue to solve at the country level.

What are my suggestions?

1.   If you are doing forced trading due to your situations in your job or business – I have a better alternative.  Use that money for your day-to-day expenses rather than losing in the market. Side by side develops your existing business or skill sets so that you can earn a decent income going forward. Remember there are no shortcuts.

2.   If you are hell bend to make money from stocks – then train yourself under some expert and then come to the market or keep a live coach with you while you are trading.

What about HARSHAD MEHTA?

He attracted a large number of small investors in his time and most of them lost their hard-earned money in the end. In October 2020 – the web series on his life was launched. Many new investors got fascinated by watching that series and they want to replicate him. This is easier thought than done.

All I am saying – when the last time Harshad Mehta came – Teji came and then people lost. Now – Harshad Mehta Series came and Teji came. So, the end of that Teji will follow sometime in the future.

Educate yourself and Trade.

Follow me on Twitter @hiteshmparikh /  WhatsApp - +91-9869425399.

 

Live With Passion…Invest With Passion.

 

Hitesh Parikh.