PREPARE FOR PICKING STOCKS

It is always difficult to be sure in stock market. The days before, when I did put down my opinion as “it is probably not the right time to pick up stock for small investors”( LINK), many of my friends were at serious difference with me.

I had my own reasons to come up with a statement like that.

As always the small investors tend to pick up stocks at higher price. How many of us could pick up our stocks at bottom, yesterday we came to know about the turn around of the market a tad later, by the time, it wheezed past many a miles, certainly we lost some good ground.

But again, the yesterday’s rally was the turn around of the market?

Probably not, the market again went down today for some reason that we could not think of. It seems the market will behave in weird way for some more time.
Or to me, till the liquidity re-injected from the refunds of Reliance Power IPO. That means after a week time. We can wait for some more time till a clear picture.

There are many a stocks which are at very attractive price right now. But the stocks which were at their best before the slide may not go back to the original position at the same rapid stride. History has many instances. Zoom your attention to the stocks with good fundamentals and which has prospects to grow, stock market always pays premium to growth story.

I have identified few stocks for picking up when the market stabilizes, but again I am suffering from liquidity crunch like most small investors.

Powergrid

GMR infra

PetronetLNG

ONGC

IFCI

RNRL

Nagarjuna Fertilizer

RPL

May be it is the right time to buy as per the market pundits, but listen to your inner self too. Most of the time, in such situation the gut-feelings presents the answer.

The loss or gain is yours, so nobody is going to shoulder responsibility but everybody will claim credits.