Sensex May Touch 42,000 By March 31, 2019!

I think by now most of us are convinced about the bull market we are in. What is heartening to see is that the mid-caps and the small-caps are catching up with the large-caps. In fact, the mid-caps are outperforming the large-caps, if we consider the previous month’s performance. I am now looking at 42,000 level in the Sensex by March 31, 2019. 

The global equity markets appear to be stable after a bout of volatility hit the markets owing to the trade war fears and the Turkey incident. Locally, the earnings have been impressive this season. Remember always that earnings are the foundation of the markets. The earnings are expected to improve in the coming quarters, even as India’s growth indicators show that the animal spirits are very much alive with the business activity and bank loan disbursals showing an uptick. 

In the current issue, we have discussed at length the perils of averaging and why it needs to be avoided if investors want to create wealth for themselves from the equity markets. There is overwhelming evidence that suggests retail investors have added those stocks that have shown a long term downtrend. Such behaviour is wealth-destructive. In the cover story, we have explained the steps that need to be followed while investing in a ‘falling knife’. Do come back to us if you like our cover story and wish to share your experience 

We find that the paper stocks are enticing investors with their recent performance. In our special story on paper stocks, we highlight the reasons why paper industry is doing well and the stocks to bet on in the paper industry. 

The 52-week high/low data are the most watched out by investors. Indeed, the 52-w H/L figures are crucial in decision-making, but then one has to be careful while adopting any strategy that is based on stock prices alone. In our special story, we have mentioned how best to use the data and whether there is any profitable strategy that can be developed around the 52-w H/L data. I am sure you will benefit a lot from our observations. Urge you all to share your views on our observations. 

On markets, do one thing – don’t invest all your monies at one go. Use staggered investment strategy for optimal returns. As very few sectors remain undervalued, adopt the age-old bottom-up approach for identifying investment opportunities. Markets will not disappoint those who show patience. Keep reading your favourite magazine for stock ideas as markets promise to deliver good returns this season as well. 

Happy investing !