Indian market down in coronavirus. Should you Invest? Which stock will Profitable for Investment in Downmarket?
The global Stock market has down due to coronavirus and The lockdown in India became a devil to make The stock market excessive weak. A bearish market is appearing.
The prime minister of India Narendra Modi has enunciated the lockdown in India on 24 March for 21days and Now it has extended to 3 May. This putting up a massive impact on the Indian market. No one knows How many days it will continue.
We all have known this is only the reason of Coronavirus. It has given a huge negative impact in China market when it was in China. Like the Automobile sector and much other manufacturing industry which has gone under the pressure of these. When it enters into India it was started their negative impact, many investors started the panic. When investors started a panic lot more stocks are turned to sell and the volatility has appeared. And the stock market turned down along with the Indian market.
So in this situation question is arising what is the right time to invest?. If we invest in the market it goes down. Many trader and investors are loose their opportunity like this. We know when the market goes down too many opportunities come out. But in such cases, you shouldn't way for trading because that's the situation when lots of investors lost their money. when the market starts to go down there are a lot more chances to repeat downward and also a chance to grow up. So here it 50- 50 chances. See it as an opportunity and invest a little bit in all down market by diversifying your investment.
If you want to react as an investor and start your diversification Investment. The little pieces of your investments will give you much profit in the future. Because no one can see the bottom of the market so don't think too much otherwise you will miss the chance.
So. All we are cleared about the Downmarket investment that should buy stock from the dip of the market. But investors are then confusing about choosing the right stock. So what is the right stock you should buy? Which companies stock will profitable? This Is your question right!!!
Okay, lets clear your question. You should always put your investment in a company who is strong fundamentally. Who has performed very much fantastic in the last few years? If I discuss Nifty, it has gone 10% down. Particularly, in this case, you can get stocks lower price from a company that has fundamentally strong and able to be in profit. that means the company you have chosen is not fundamentally strong now but can in the future. that's why you can win it at the cheapest price.
I will recommend you always diversify your investment. Don't put all your money at once and in one place. Divide it and invest little in all. I mean to say that you can invest some in currencies, some in an asset like material, some in Mutual fund and some in buying stocks.
Because when the stock market has gone 10% loss but if we take a look in Gold which grow up from 40000 to 44000. so If you diversify your investment, if one of these will loss then another one will give you profit. which can reduce the panic of investors.
Another way is, to save some little portion of money in the liquid fund in the bank or any mutual fund. Because when your bought stock is in loss then the company offers you buy that at a lower price so if you have some money in your liquid fund you can use it to buy the same share which can be more chances to be profitable in the future. The liquid fund will also help you in Emergency cases if your stock is a down condition.
And last but not the least
If you are more confident in the share market you should buy stock in every dip. You should not think that coming some days your stock will be in profit or not whatever it will be and don't expect too much for the market to go down otherwise you will miss the opportunities. So you have to invest a little portion in every dip of the market. But don't invest all amount once. Save some in liquid found.
Any doubt feel free to contact us.
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