DSIJ Mindshare

Watch out for Reliance Communications, Tata Motors, Bharti Airtel, Aarti Drugs, Avanti Feeds, Apex Frozen Foods, Waterbase.

Today, the Indian markets are likely to open on a positive and stable note followed by robust closure in the US markets amid strong jobs data. The SGX Nifty, which has surged 118 points at 10331.50 at 7.15 hours IST, is indicating that the Nifty is likely to have positive opening in the Indian markets.  

You must have heard the oft-repeated advice, “Timing the market is not important, time in the market is”. Well, let us admit that this holds true for long term investments and, therefore, it makes a forceful case for long term investments. But if timing the market is not important, then how does one make money in the short term?

Being in cash comes with an opportunity cost, which is the benefit foregone by the investor by holding cash. In other words, the opportunity cost is the indirect loss suffered by the investor by holding cash.

These averages come in handy to determine the likely movement of the stock, commodity or the index going forward and, accordingly, decide on the course of action to be taken.