3 paper industry stocks which could give 20-23% return | Stock Market

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Manali Bhatia

China is the major consumer of paper worldwide at 106 million tonnes, followed by the US at 71 million tonnes and India sharing the same scale of the population as in China consumes a very little share which makes us understand the fact that India has a lower penetration rate and enjoys a greater scope of growth.

Talking particularly of the packaging sector, around 55 percent of the global consumption of paper is in wrapping and packaging. India is still behind in this particular segment. The plastic used to be the first choice of manufacturers for packaging.

In the recent past, state governments have taken a series of measures to ban plastic and ensured strict compliance in the plastic industry. This move has helped gain traction for the paper packaging industry, though not fully scaled up yet, and would increase its demand in the coming years. Also, robust demand in the food industry, mono cartons in the pharma sector, and multiple orders online are expected to drive substantial demand for paper packaging.

Secondly, China has banned the import of certain waste grade of paper owing to environmental concerns resulting in a decrease in waste paper prices. India which imports around 40 percent of waste paper stands to benefit out of the same. As already India has a scarcity of Pulpwood, the raw material used for manufacturing paper, and in the coming years owing to environmental concerns this scarcity is expected to shoot up further, giving pricing power to this industry. Attributes to this pricing power are also due to limited production (68.58 lakh tones) and increase in consumption (109.27 lakh tones).

Thirdly, there is a demand by major players to increase import duty on paper products, currently at 0 percent as per FTA. If it does, it would also provide benefit to this sector.

Also, the “Going digital” the slogan was expected to be a major slowdown in the paper sector. But, nevertheless, it should be known that paper packaging would be a boon for this industry.

JK Paper | Rating: Buy | CMP: Rs 122 | Target: Rs 150 | Return: 23 percent

The last quarter has been the best for FY19. A surge in the price of paper has contributed to an upside in revenue. Moreover, most of the pulp is derived from plantations close to their manufacturing units attributing to the reduction in material costs and expansion of margins.

The company is having two large integrated paper manufacturing units with a combined capacity of 4,55,000 TPA and is already running at 100 percent capacity utilization. At the Sirpur plant, two machines will start producing from the second quarter and the other two machines will be ready for production by September-October 2019. Thereby, the full capacity will be used for production purposes by October.

This additional expansion will help grow by at least 20 percent in volume terms. Furthermore, the expansion plan is in line for a new packaging board machine and pulp mill in Gujarat, awaiting environmental clearance were an additional new board machine of 1.7 lakh tone or two lakh ton would be added.

Also, it would be putting up a pulp mill of almost 1.5 lakh ton capacity in the next two years.

The company has a healthy financial profile; the net debt has been brought down significantly to Rs 700 crore in fiscal 2018-19 and the surplus cash being generated in going ahead will be used for repaying the debts.

Huhtamaki PPL | Rating: Buy | CMP: Rs 259 | Target: Rs 310 | Return: 20 percent

Being having a strong legacy, a unique client base and relative inelasticity of the FMCG sector (derives 80-90 percent of revenue) to economic cycles, coupled with the global footprint of parentage, and deep market penetration; aids company to make profits in long run.

In 2018, it suffered from extra provisioning on account of income tax and interest. However, from Q4 CY 18, most issues have been settled down and delivered vigorous Q1 CY19 results. Forthcoming, it expects topline to grow at 10-12 percent and likely to see 60-80 Bps ramp up in operating margin in the next two years. But, the margin growth depends on upcoming monsoon, the scenario of the FMCG sector and volatility in crude oil prices.

Increasing capacity utilization to a maximum of 80-85 percent, improving demand for flexible packaging and NASP initiatives would enable to improve its volume growth and boost revenues as well as profits ahead. In addition, the acquisition of PPIL and Ajanta Packaging (India) would help to consolidate its position in pressure sensitive label business, and is likely to be EPS accretive as well, which could help to expand strong foothold and growth too.

International Paper APPM | Rating: Buy | CMP: Rs 428 | Target: 520 | Return: 21 percent

International Paper APPM being an MNC company is well placed to take advantage of the growth in paper industry. On the front of the number, it reported pretty damn good results with EBITDA soared 61 percent during Q4 FY 19 driven by higher sales volume, record production levels, lower cost of raw material and improved operational efficiencies. Besides, a sharp fall in interest charges added to the company’s profitability, registering 83 percent PAT growth in Q4.

In addition, Debt has been significantly dwindled from Rs 180 crores to Rs 12.54 crores in FY 19 and is expect to be brought down further moving forward. Despite its plant running at 95 percent capacity utilization, it has not yet announced any significant capacity expansion plans for subsequent years. Moreover, China’s ban on imports of low grade recovered paper is expected to keep global pulp prices elevated, the resultant increase in global paper prices which has improved its realizations, thereby supporting its high margin ahead.

By investing in fiber-based markets, controlling costs, managing capital spending and focusing on deliberate improvement efforts to increase productivity and efficiency, expects a company generating a strong set of numbers and free cash flow in years to come.

The Author is Senior Research Analyst at Rudra Shares and Stock Brokers

Disclaimer: The views and investment tips expressed by investment expert on here are his own and not that of the website or its management. We advise users to check with certified experts before taking any investment decisions.

source:- https://www.moneycontrol.com/news/business/stocks/demand-of-import-duty-gives-pricing-power-to-paper-industry-3-stocks-could-give-20-23-return-4151431.html

Share Market: Top gainers & losers for the week

Domestic markets ended the week on weak note with Nifty finished below 11,750 level amid uncertainty around the US-China trade negotiations and rising oil prices.

Stock Market Tips

The Nifty50 started off selling at the word go and fell further in the latter part on June 21 after escalating tensions between US-Iran and RBI Government comments.

The index closed way below 11,800 levels and formed Bearish Belt Hold pattern on the daily charts and bearish candle on the weekly scale. For the week, the index lost 0.8 percent, continuing downtrend for the third consecutive week.

The index has recently taken multiple support near 50 DEMA at 11,650 zones but the absence of buying interest is also visible at 11,850 zones, experts said, adding that bearish candle on daily, as well as weekly, scale indicates that bears are restricting its upside momentum.

The Nifty50 opened lower at 11,827.60, which was also an intraday high, and extended selling pressure in the second half to hit a day's low of 11,705.10. The index closed lower by 107.70 points at 11,724.10.

Domestic markets ended the week on a weak note with Nifty finished below 11,750 level amid uncertainty around the US-China trade negotiations and rising oil prices.

At close, the Sensex was down 407.14 points at 39,194.49. About 1157 shares have advanced, 1292 shares declined, and 167 shares are unchanged.

Here is a look at the top gainers and losers for the week:

Hexaware Technologies, up 21 percent

The share price of the software firm Hexaware Tech gained over 20 percent for the week. Japanese brokerage Nomura upgraded to the company to “neutral” from “reduce” after the acquisition of Mobiquity. On June 14, Hexaware acquired US firm Mobiquity Inc for around USD 182 million to directly compete with large digital agencies and consulting firms.

"We acquired Mobiquity Inc for a total consideration of around $182 million to directly compete with large digital agencies and consulting firms," the Indian IT firm said in its BSE filing.

Suzlon Energy, up 10 percent

Suzlon Energy added over 10 percent for the week. The stock jumped the most in five months on June 20. Lenders are likely to consider the beleaguered wind-turbine maker's plan to sell its operations and maintenance business to pare debt. The firm plans to offer a so-called one-time settlement to the lenders led by SBI using the proceeds of the sale, sources said.

Godrej Properties, up 4.65 percent

Real estate major Godrej Properties registered gains of over 4 percent for the week. However, the scrip fell 3 percent intraday on June 21 after global investment firm Morgan Stanley downgraded the stock on valuation concerns. "We downgrade Godrej Properties to underweight from equal-weight, but raised price target to Rs 802 from Rs 707 earlier," the brokerage said, adding current valuation appears ahead of fundamentals.

It further said the downgrade reflected its relative preference within its coverage universe. The stock trades at a 10 percent premium to one-year forward NAV estimate and risk-reward is skewed negatively, it added.

Jain Irrigation Systems, down 32 percent

The share price of Jain Irrigation Systems plunged as much as 32 percent for the week after India Ratings cut its long-term issuer rating. India Ratings and Research said it has downgraded Jain Irrigation Systems' Long-Term Issuer Rating to BBB from A- while placing it on Rating Watch Negative (RWN).

The downgrade reflects deterioration in the liquidity profile of Jain Irrigation on account of a delay in the realization of its receivables from its micro-irrigation systems (MIS) the segment, the rating agency said.

Reliance Communications, down 13 percent

Claims against Reliance Communications (RCom) has risen to Rs 57,382.5 crore with new entities, including some Reliance Anil Dhirubhai Ambani Group companies, joining the creditors' list, according to a regulatory filing. Interim Resolution Professional (IRP) Pradeep Kumar Sethi, however, admitted dues of Rs 30 crore out of fresh claims of Rs 8,189 crore, taking admitted claims so far to Rs 49,223.88 crore, RCom said in the filing.

The stock price continued to slide even further after Reliance Communications reported a consolidated net loss of Rs 7,767 crore in the fourth quarter of 2018 -19. For the entire financial year 2018-19, the company reported a net loss of Rs 7,206 crore as against Rs 23,839 crore in 2017-18.

Jet Airways, down 11 percent

Jet Airways has been on a roller-coaster ride throughout the week with the stock skyrocketing as much as 150 percent on June 20. The Mumbai bench of National Company Law Tribunal (NCLT) an admitted petition filed by the State Bank of India (SBI) for resolution of Jet Airways under the Insolvency code and suggested a timeline of 90 days, citing it as a matter of national importance.

NCLT directed the IRP to submit fortnightly progress reports on the case, with the first such report to be submitted before July 5. The troubled airline that was grounded two months ago as it ran out of cash, owes over Rs 8,000 crore to a consortium of 26 banks led by SBI.

UPL, down 11.36 percent

The share price of agrochemical company UPL registered a loss of 11 percent for the week. However, the stock rebounded 5 percent on June 21 after Deutsche Bank maintained a buy call on the stock. The brokerage house also set the target price at Rs 1,050, implying a 21 percent potential upside from current levels.

UPL shares corrected 13 percent in the previous two sessions – on June 19 and June 20 – on concerns like Mauritius Tax Law and Asian Swine Fever. Deutsche believes these concerns are overdone.

Dewan Housing Finance, down 9 percent

The NBFC crisis has led to DHFL registering yet another week of loses with the scrip ending the week 9 percent in the red. The scrip rose 10 percent on June 21 after reports made rounds that the company has sold Rs 2,000 crore worth of its loan portfolio to offshore investors led by SC Lowy, a privately-held banking group headquartered in Hong Kong.

The share price fell 16 percent to hit five-and-half-year low on June 6 as rating agencies downgraded rating on commercial paper after the company defaulted on debt repayment.

Indiabulls Housing Finance, down 8.93 percent

The share price of Indiabulls Housing Finance ended the week down over 8 percent. The stock fell 8 percent on June 12 after the company moved the Supreme Court seeking an urgent listing of a plea filed against it in which it has been alleged that the company misappropriated Rs 98,000 crore of public money.

Indiabulls Housing Finance on Friday said the Competition Commission of India (CCI) has approved the proposed merger of the company with Lakshmi Vilas Bank. "The Competition Commission of India... at its meeting held on June 20, 2019, considered the proposed combination and approved the same," Indiabulls Housing Finance said in a BSE filing.

IRB Infra, down 12.85 percent

IRB Infra ended the week with loses of over 12 percent. During the week, the share price fell 14 percent on June 19 to hit more than the five-year low after a media report indicated that there could be a new operator for Mumbai-Pune Expressway.

IRB Infrastructure told CNBC-TV18 that it will rebid for the Mumbai-Pune project in August as it contributed 13 percent to FY19 revenues. 

source:- https://www.moneycontrol.com/news/business/markets/top-gainers-losers-for-the-week-hexaware-jain-irrigation-jet-airways-top-the-charts-4126111.html

Share Market Tips in Hindi

Free Stock Tips: 4 golden rules of investing in stocks

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Free Stock Tips

If you want to invest in stocks, then remember these four main things.

1. Select the right company -
Choose profitably and a better the company that has earned at least a 20% profit on the shareholder's capital.

Ideally, a long-term investment (over 5 years) allows you to participate in the company's development.

In the short term (3 to 6 months), the performance of the stock is less than the original principles of the company and the market is more motivated. While the relevance of the right price decreases in the long term.

2. Stay informed - investing in stocks is a long learning process, in which you learn from your mistakes. These are some facts that can make this process easier.

Diversity in investment - Do not exceed 10% of your fund in any one stock, even if it is a gem, on the other hand, do not invest in too many stocks as it is difficult to monitor them. For a less active long-term investor, 15-20 different stocks are good numbers.

Use this asset allocation tool to find out if you need to make additional investments from shares.

Keep analyzing your company's performance with its quarterly results, annual reports, and news articles.

Find a good broker and understand the settlement system.

Do not pay attention to the hot tips because if it really works, then we all were corpses.

Avoid the temptation to buy more because each purchase is a new investment decision. Buy as much like shares of a company as per your total allocation plan.

3.Monitoring and review -
Regular monitoring and review the stock recommendations for intraday of your investment. Keep an eye on the announcement of the results of the quarterly results of the stock and at least once a week, write down the improvement in stock prices on your portfolio worksheet. This work is more important for the unstable time when you can get a better chance to choose the value.

As you can see how you can buy a rupee coin of 50 paise coin. Buy 1 rupee coins at 50 paise

Apart from this, also check that the reasons for which you had bought the shares before, are still valid or there have been significant changes in your earlier estimates and expectations. Also, adopt an annual review process so that you can check the performance of equity shares within your total asset allocation.

If necessary, you can review RiskAnalyser because of your risk profile and risk capacity can change over a 12 month period.

4. Learn from mistakes - Identify and learn from your mistakes during the review, because no one can beat your own experience. This experience will be your 'pearl of knowledge' which will surely help you make a successful stock investor.

Share Market: खबरों वाले शेयर, आज इनमें जरूर रहेगी हलचल

Stock Market Tips in Hindi

Share Market Tips | Free Stock Tips

शेयरों की हर हलचल पर पैनी नजर रखकर अपने निवेश को सुरक्षित जरूर किया जा सकता है। यहां हम बता रहे हैं ऐसे शेयर जो रहेंगे आज खबरों में और जिन पर होगी बाजार की नजर।

HDFC AMC

ESSEL GROUP कंपनियों में निवेश का घाटा HDFC AMC झेलेगा। साथ ही HDFC AMC, FMC में निवेशकों का पूरा पैसा वापस करेगी। HDFC AMC फिलहाल 500 करोड़ रुपये का घाटा अपने खाते में लेगी। HDFC AMC का 1156 करोड़ रुपये का एक्सपोजर है।

JET AIRWAYS

लैंडर्स ने JET को NCLT ले जाने का फैसला किया। JET AIRWAYS के लिए सिर्फ एक बोली मिली है।

MAX INDIA

प्रोमोटर ने 2.75 करोड़ शेयर छुड़ाए है।

DHFL

DHFL ने NCD पर 56.8 लाख के ब्याज का भुगतान किया है।

AU SMALL FINANCE BANK

बोर्ड टियर-II बॉन्ड जारी करने पर विचार करेगा।

INDIGO

नए विमान खरीदने के लिए 20 अरब डॉलर का ऑर्डर दिया है। कंपनी CFM INTERNATIONAL से नए विमान खरीदेगी। 2020 से नए एयरक्राफ्ट की डिलिवरी मिलनी शुरू हो जाएगी।

TECH MAHINDRA

कनाडा की OBJECTWISE CONSULTING GROUP को 27.5 लाख कनाडियन डॉलर में कंपनी खरीदेगी।

MCLEOD RUSSEL

ICRA ने कंपनी के कर्ज की रेटिंग BBB- से घटाकर B- की है। IRCA ने आउटलुक निगेटिव किया है।

BIOCON

कंपनी अपनी सब्सिडियरी ब्रांडेड फॉर्मूलेशन कारोबार को 45 करोड़ रुपये में बेचेगी।

source:- https://hindi.moneycontrol.com/news/hot-stocks-news/stocks-in-news_208303.html

Free Stock Tips | Will the SIP in these 5 stocks get 25% return?

Free Stock Tips | Share Market Tips

Free Stock Tips

The stock market reached a record high on June 3. Before the general budget, the stock market is trading in a limited range. This indicates that there will be a rise in any particular stock.

Market analysts say that this rapid growth of the market has already been higher than the fundamentals. In such a scenario, there is not much scope for indices. However, the valuation of some large-caps and many small and mid-cap stocks is at the right level.

Bharat Ram Elkitu, India Equity Head of BNP Paribas, said the valuation of the index is not at the right level. Still, you can choose some good stocks from the market. He said that BSE Midcap and Small Cap have recovered from their lowest level. But their valuation is still better than the Nifty.

The brokerage house has recommended 16 stocks that you can get up to 18-25 percent returns. For better returns, you can sip for 18 to 24 months.

Bharat Electronics

BEL is the country's largest Defense Electronics Equipment Manufacturing Company. The company has an addendum of Rs 51,798 crores till March 31. This can increase the company's earnings and profits in the coming quarters.

Can Fin Homes

In the first quarter of the calendar year 2019, declining discount in the interim budget, the reduction in the rate of GST rate cut and home loan has increased both the housing sales and supply. In the fourth quarter of the fiscal year 2019, the company's loan disbursement increased 18.5 percent to Rs 812 crore.

This trend will continue from rural to urban areas. During 2001-2011, the urban population of the country increased by 2.8 percent from the CAGR. There has not been much penetration in the loan finance in India right now. So there is a lot of opportunity for the company.

Hero Motocorp

This company's occupation of the two-wheeler market in India remains intact. The company's market share in Fiscal Year 2013 was 53 percent, which is also up to 50 percent in the fiscal year 2019. The company is launching new products in scooters and premium motorcycle segments.

The company wants the GST rate on 100CC bikes is reduced from 28 percent to 18 percent. If this happens then the company will be of great benefit.

Trent

The company is in the business of readymade garment. It works in three types of formats, which are Westside, Star, and Landmark. Trent's strongest brand is Westside. Its focus is on women's clothing and private labels.

The two-decade-old company's strategy is from private labels. The company is the expansion of its store. The fourth quarter of 2019 compared to last year was satisfactory to the company in terms of revenues. During this period, the company's earnings are 26.4 percent. Their EBITDA increased by 19 percent and after-tax 38 percent more profits.

HDFC Life

The value of the company's Value of Business (VNB) has increased marginally. It is expected that HDFC Life's life insurance premium will remain at around 70 percent of HDFC Life. At present, the company is getting many competitive advantages from its partner HDFC Bank.

(Expert’s Investment Idea are private.)

Share Market Tips in Hindi

Market Live: सेंसेक्स 115 अंक टूटा, निफ्टी 11,900 के नीचे फिसला

Free Stock Tips

Free Stock Tips | Share Market Tips

09.35

एशियाई बाजारों मे आज कमजोर कारोबार देखने को मिल रहा है। एसजीएक्स निफ्टी पर भी हल्का दबाव देखने को मिल रहा है। ट्रेड टेंशन बढ़ने की आशंका से कल अमेरिकी बाजारों में लगातार दूसरे दिन गिरावट देखने को मिली। उधर अमेरिका में क्रूड इनवेंटरी बढ़ने और डिमांड में कमी की आशंका से कच्चे तेल में 4 फीसदी की भारी गिरावट देखने को मिली है। ब्रेंट 60 डॉलर के नीचे फिसल गया है।

भारतीय बाजारों पर नजर डालें तो सेंसेक्स और निफ्टी की चाल में सुस्ती देखने को मिल रही है। दिग्गज शेयरों के साथ ही आज मिड और स्मॉलकैप शेयरों में भी सुस्ती नजर आ रही है। बीएसई का मिडकैप इंडेक्स 0.21 फीसदी की कमजोरी के साथ 14,891.82 के स्तर पर नजर आ रहा है। वहीं, स्मॉलकैप इंडेक्स 0.33 फीसदी की कमजोरी के साथ 14,500.61 के स्तर पर कारोबार कर रहा है। क्रूड में कमजोरी का फायदा तेल और गैस शेयरों को मिल रहा है। बीएसई का ऑयल एंड गैस इंडेक्स आज 0.22 फीसदी की बढ़त के साथ कारोबार कर रहा है।

बाजार में आज रियल्टी और फाइनेंसियल सेक्टर शेयरों को छोड़कर चौतरफा दबाव देखने को मिल रहा है। निफ्टी के ऑटो इंडेक्स में 0.29 फीसदी, एफएमसीजी इंडेक्स में 0.44 फीसदी, आईटी इंडेक्स में 0.10 फीसदी, मेटल इंडेक्स में 0.88 फीसदी और फार्मा इंडेक्स में 0.12 फीसदी की कमजोरी देखने को मिल रही है।

हालांकि कारोबार के इस दौरान रियल्टी, मीडिया और फाइनेंशियल शेयरों में कुछ खरीदारी दिख रही है। निफ्टी का रियल्टी इंडेक्स 0.42 फीसदी की बढ़त के साथ कारोबार करता नजर आ रहा है।

फिलहाल बीएसई का 30 शेयरों वाला प्रमुख इंडेक्स सेंसेक्स करीब 115 अंक यानि 0.3 फीसदी की कमजोरी के साथ 39,640 के स्तर के आसपास कारोबार कर रहा है। वहीं एनएसई का 50 शेयरों वाला प्रमुख इंडेक्स निफ्टी करीब 35 अंक यानि 0.28 फीसदी की कमजोरी के साथ 11,875 के नीचे कारोबार कर रहा है।

source:- https://hindi.moneycontrol.com/news/market-news/market-live-updates-sensex-down-115-points-nifty-slips-below-11900-share-market-updates_207885.html

What are the procedures involved in the Stock Market Investment?

Free Stock Tips

Fixed and regular income can’t satisfy our needs. For balancing expanses some outsource needs to be executive. Stock Market can be one of the best choices for Extra Income. But before investing in the Stock Market you must be eligible for it. The Eligibility criteria for Stock Trading can get from any Free Stock Tips provider companies or Stock Broker Firms easily.

Here I am reflecting you the most salutary process of Stock Market Investment which I got from the Best Stock Advisory Firm “TradeIndia Research”.

Age Limit for Trading: If you have some experience in the stock market then you can start investing at the age of 18. TradeIndia Research advice below 21 years old traders for not to trade if you have no source of income. The maximum age limit for trading in India is 60. Senior citizens above 60 age group cannot trade and financial Advisors(Stock Market Tips provider) advises senior citizens below 60 for not to trade with pension or gratuity. It is not because of the fear of loss of money but it for their safety as most of the time Market needs to hold stocks for a long time and is not possible for every senior citizen to wait for a long time.

Mandatory Documents: Traders are advised to have a PAN Card and Aadhar Card and are Mandatory. The Securities and Exchange Board of India (SEBI) needs an Id proof for KYC(Know your Client) updates. Other than KYC, the board has mandated to have a six-month of Bank Statement along with a canceled cheque, to open a demat account.

Stock Broker: Stockbrokers are individuals, a person, a company, or an agency which has an authority to trade on the Stock Exchanges under SEBI guidelines. A person cannot do trade directly. Buying and selling have to be done through brokers only.

Get a demat account: For transaction maintenance, the trader must have a Demat Account. Shares cannot be held in physical form and they form part of the dematerialized or demat account. This account holds the stocks that you have purchased and reflects them in your name.

For trading, traders have got to inform broker the quantity to be bought or sold along with the price at which trader wish to carry out the transaction.

What forces the Stock Market to manipulate? How to get profit in such situation?

Stock Market Tips

The Stock Market makes you win in any possible ways if you know the tricks to manipulate it according to your requirement. Manipulations involve inflating or deflating of the price of security or stocks for personal profit. Manipulations are of three types price manipulation, stock manipulation, and market manipulation.

The share prices of smaller companies are easily manipulated as they are not closely watched by analysts, so the predictions make on such stocks are not so much accurate. This creates the possibility of manipulating the Stock Market.

Placing hundreds of small orders in place of one single order also manipulates the market. This makes investors feel something wrong with the stock, so they sell, pushing the prices even lower. Simultaneously buy and sell orders through different brokers also increase interest in security.

Online channels and message boards cause the market price to manipulate by spreading false information which other investors frequently used. The pump and dump manipulation artificially inflate micro stocks. The opposite of pump and lump is the uncommon loop and poop. Loop and poop make investors believe in the unknown company rather than an established company.

One other type of legal manipulation is currency manipulation which affects the market. Only Central Bank and national governments can engage in such type of manipulation.

Solution: Try to get expert advice before taking any decision, do not believe in rumors. If you take the help of Stock Market Tips provider companies then the possibilities of making a profit will become larger than that of believing in online channels and message boards.

What are the tricks to manage risk in Stock Market?

Free Stock Market Tips

Stock Market without risk cannot be expected. But if you know the tricks to manage risk then you will not be bonded yourself in any limits. Whatever section or segment in which you trade wouldn’t affect you. Here we describe you few of the major tricks to manage risk in Stock Market-

Follow the trend:- Trends are the directions at which stocks move either upward or downward based on whether the market is bullish or bearish. There is a specific time duration for each and every trend. Analysis of the current trend of Stock Market helps to predict the future trends for a market. For low-risk trading, you must follow the trend. But keep in mind that nobody can predict the trend of 100% accurately.

Rebalancing investments:- Rebalancing involves buying low or underperformed assets and selling the high rated assets in a portfolio to maintain a level of assets. For example, let’s take two stocks, Stock A and Stock B. If the value of Stock A increased by 25% while the value of Stock B increased by 5% then the portfolio will be tied to Stock A. But if Stock A experiences a sudden downturn then it will suffer from higher losses. Rebalancing lets the investor redirect some of the funds from Stock A to Stock B or purchasing entirely new stock to maintain a level of Stocks or risk-free trading.

Position sizing:- It involves not to invest in current stock or invest only a small amount of your capital if the current investment is riskier than others. A small loss is always better than the major one. Here you have got to shift some of the capital to cash.

Stop-Loss orders:- If you want to automatically sell out all or a portion of your investment in a given stock then always choose to place stop-loss or order your broker to sell a stock when a stop-loss position hits. Actually stop-loss is the position in Stock Market below which the chances of falling of value of a stock are maximum. So sell your stock before the value goes down.

Diversification in Stocks: - Try not to buy the stocks of the same company. The chances of loss in non-correlated stocks are lower than that of the same stocks.

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What are the restrictions that should be known before Stock trading?

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Before start trading, you should be financially stable. Most of the people start investing in the stock market without any cash in hand that means on credit. At the time of trading, we cannot expect that we absolutely get profit. So before investing you should be financially stable and mentally prepare for risk-taking. 

Make a concrete plan: Before starting trading you should have at least basic knowledge of Stock Market, so educate yourself as much as possible about how to analyze the stock market, how to do technical analysis, know more about chart patterns, etc. 

The second most important thing that should be known before trading is the selection of Stock Broker. As we all know that values of stocks in market changes at any instant, so be careful in choosing the right brokerage firm. Actually, brokerage firms handle your Demat account. Buying, selling and holding of stocks are all done by brokers. So they should be fast forward enough that when you order them to take an action then they must initiate it without any time loss. If the broker does not take an action instantly than it can be possible that your stop-loss has gone and might you lose. 

For accurate and Free Stock Tips you should ask for advisory also. Advisories have researchers who give tips, support and resistance levels, stop-loss and targets of a particular stock or stocks. So before start trading, you should know the right stock advisory for high accurate trading tips and recommendations.

Have investment anxiety? Here are 3 steps to help you manage it

Share Market Tips | Free Stock Tips

Share Market Tips

Rahul Jain

It has been a week since the elections have concluded and considering the market gyrations – it is expected that it will take some time to stabilize. As seen on the day of elections, the Nifty underwent a yo-yo of movements. It peaked at 12:00 am by 200 points and then, thereon dropped by 100 points. Such market movement can prove to be eclectic for any investor.

The toughest thing for any investor in such times is to remain convinced towards their game plan. Today, let me take you through some tried and tested methods on how to best manage investment anxiety.

Think out loud

Investment behavior drives the majority of your investment performance. Therefore, make every attempt to move out of your emotional response centers. Avoid making big changes before getting them checked with trusted sources.

Generally, when we are hit with a crisis situation or experience panic, then our brain goes into an overdrive and we start analyzing historical trends with minute accuracy. We thereon, try to replicate decisions or actions which had proven to be successful previously – this may not be the best course of action to ever take. Most importantly, when stuck in such a situation don’t be afraid to ask for help.

Reflect on your values

Our values are generally long-term drivers of why we choose to invest in the first place. Investing is the process where you will experience several ups and downs – and such times will be a good place to revisit your values. The values will allow you to reflect on the reasons you choose in the first place.

If you make significant decisions in the crisis moments, challenge the motives for the decision and weigh them against your values mentioned earlier. If so, spend more time with the problem and possible solutions.

Consider your time horizon

Volatility can cause some investors to lose their nerve and abandon their market strategy. They succumb to behavioral biases and end up "buying high and selling low". In other words, volatility induces bad investor behavior. On the other hand, long-term investors are more comfortable, as they are less affected by market volatility.

Hence, consider your time horizon here, understand that all of your money will probably not be needed in the first five years of your retirement. As long-term investors, make sure that you have a diversified portfolio of common stocks and ride out market volatility.

Most importantly, remember that a long-term perspective is the single most important quality necessary to achieve success in investing. Markets can be irrationally overvalued or undervalued in the short-term. Sentiment drives the market in the short run, while fundamentals drive the market in the long run.

The Author is Head-Personal Wealth Advisory at Edelweiss.

Disclaimer: The views and investment tips expressed by investment expert here are his own and not that of the website or its management. We advise users to check with certified experts before taking any investment decisions.

source:- https://www.moneycontrol.com/news/business/markets/have-investment-anxiety-here-are-3-steps-to-help-you-manage-it-4053991.html