Markets Archives - PrimeInvestor

Markets

Technical outlook – the Nifty 50 and broader markets

As observed in the previous update on targets for the Nifty 50, the index remained strong and also moved pretty close the target zone of 18,700-18,750. The index recorded a high of 18,662 on May 30 and has since been in a consolidation. In this update, we take a quick look at the short-term outlook for the Nifty 50 index and focus on a more detailed outlook for the broader markets and interesting sectors.

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B Krishnakumar June 6, 2023 No Comments

MF Consultation paper, Adani investigation & Market levels

Markets

Podcast : MF Consultation paper, Adani investigation & Market levels

In this first episode of the PrimeInvestor podcast, our host Gaurav Menon and co-founder Vidya Bala discuss the MF Consultation paper along with various other topics related to personal finance and the Indian markets.

PrimeInvestor Research Team June 4, 2023 5 Comments

Markets

FMCG sector: At the crossroads

Around this time last year, we had analysed the FMCG sector’s March 2022 quarter earnings. At the time, the sector was grappling with twin headwinds of a demand slump and rising input costs. Valuations were still expensive. Most FMCG players have declared their results for the March 2023 quarter.

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N V Chandrachoodamani May 16, 2023 No Comments

Technical Outlook - fresh targets for the Nifty 50

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Technical outlook: Fresh targets for the Nifty 50

A lot has happened since our previous market update, when we discussed if the worst was over for the Nifty 50. In that update, we had mentioned that the level of 17,850 on the upside and 16,900 on the lower end are the key markers to focus on. It was also highlighted that a breakout past 17,850 could pave the way for a rally to the 18,350-18,400 zone.
The Nifty 50 index has managed the latter, breaking above 17,850 and reaching the target zone of 18,350-18,400. The question now is what is in store for the Nifty 50 index. We will look at the short-term perspective here, to address this question.

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B Krishnakumar May 14, 2023 No Comments

The many facets of front-running and insider trading

Markets

The many facets of front-running and insider trading

SEBI (Securities Exchange Board of India) has levelled charges of front-running against two big institutions that may Indians are invested with – LIC and Axis Mutual Fund. Front running and its close cousin – insider trading – were quite widely prevalent in the days of yore, before SEBI drafted elaborate regulations to keep such practices at bay. But what do today’s investors need to know about these malpractices? Here’s an explainer.

R Balakrishnan May 11, 2023 1 Comment

Entering a stock at peak valuation - 5 questions to ask

Stocks

Entering a stock at peak valuation? – 5 questions to ask

When markets make merry, many stocks have seemingly compelling stories even for entering at peak valuation. And the market is fine with stretched valuations to accommodate such stories. In other words, every market-favoured stock appears to scream – buy me at any price.

But when challenges emerge, the same market starts reacting so sharply that investors who bought into the story midway start making losses. Yes, there isn’t a bigger disaster for stock market investors than earnings and PE multiples contracting together.

N V Chandrachoodamani April 11, 2023 5 Comments

Technical Outlook - Is the worst over for the Nifty 50?

Markets

Technical outlook – Is the worst over for the Nifty 50?

The bearish view on the Nifty 50 index shared over the past couple of posts has played out, and the Nifty 50 index hit the target of 16,700-16,900 mentioned earlier. Now, after recording a low of 16,828 on March 20, the index has been on a recovery path. The key question, then, would be – is worst is over for the Nifty 50? As always, we will try to address this question using our favourite charting tools including the breadth indicators.

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B Krishnakumar April 9, 2023 No Comments

Stocks

Why banking is a fragile business

The recent furore surrounding the failure of Silicon Valley Bank in the US has exposed that while banking is a favourite sector with stock market investors, the fragility of the banking business is far from well-understood. Banks are held up as the engines of economic growth. Whichever sector grows, the banking sector ultimately gains. Banks are also accorded a higher valuation than most sectors during bull phases. In good times, banks made up a 40% plus weight in our leading stock market indices.

R Balakrishnan April 2, 2023 6 Comments

Stocks

How to pick stocks in 2023

When we published our equity market outlook for 2023, we had mentioned where pockets of opportunity could be found. The correction the market is going through provides fertile grounds for stock picking. So here, we tell you how to pick stocks in 2023, in those pockets that we had noted. We do this using our Stock Screener.

N V Chandrachoodamani March 19, 2023 1 Comment

Technical outlook: Can the Nifty 50 slide further?

Markets

Technical outlook: Can the Nifty 50 slide further?

In the past couple of posts on the Nifty 50 outlook, we have been voicing a bearish view for the Nifty 50 index. This has played out as per expectations. The index almost achieved the first target of 17,150-17,200 that was mentioned a couple of posts ago. In the previous update, we had mentioned the possibility of a slide to the 16,700-16,900 zone.
Let us assess if this target is likely to be achieved or not.

B Krishnakumar March 12, 2023 No Comments

Nifty Next 50 - what should you do with your investments?

Mutual funds & ETFs

Nifty Next 50 – what should you do with your investments?

The Nifty Next 50 houses the 50 top companies by market capitalisation, after the Nifty 50. This index caught the limelight over the past month for featuring a handful of the Adani group stocks.

As we had pointed out a couple of weeks ago in our write-up on Adani stocks and index funds, the presence of a few shaky stocks in an index is not reason enough to exit it. But even before the Adani-fuelled upheaval, the Nifty Next 50’s once-outstanding performance was being eroded.

PrimeInvestor Research Team March 7, 2023 33 Comments

Governance - 8 checks to assess management quality

Stocks

Governance: 8 checks to assess management quality

The Adani saga (still continuing, I guess) brings forth the issue of governance, management quality, and other qualitative factors that many investors consider as essential check boxes. During the time I spent in CRISIL, ‘management quality’ would set a cap on ratings. But what is ‘management quality’?

R Balakrishnan February 14, 2023 1 Comment

Technical outlook – the Nifty 50 and broader markets

Podcast : MF Consultation paper, Adani investigation & Market levels

FMCG sector: At the crossroads

Technical outlook: Fresh targets for the Nifty 50

The many facets of front-running and insider trading

Entering a stock at peak valuation? – 5 questions to ask

Technical outlook – Is the worst over for the Nifty 50?

Why banking is a fragile business

How to pick stocks in 2023

Technical outlook: Can the Nifty 50 slide further?

Nifty Next 50 – what should you do with your investments?

Governance: 8 checks to assess management quality

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