Long term investing

Stock market is 'the' place for long term investors. In Indian markets sentiment has always been the key driver for price fluctuations. Hence someone who is buying in the cash markets has always benefited from volatility. Our stocks in focus have been HDFC, HDFC Bank, SBI, Larsen and Tourbo. Look how their prices have moved within almost a 30% range without any apparent change in fundamentals. ITC is another great story that is on its own bull market irrespective of market sentiment. Titan appears to have settled down in a range for now. NTPC has been beaten down but is a good long term bet always. Petronet LPG is a safe stock to buy and steady the portfolio. IDFC has been beaten down too. It provides a good entry to new investors and averaging opportunity to old ones. SBI is starting its recovery. From 3500 it had dropped to sub 2200 levels. These are all good stocks which gave us opportunity to buy at different points of time. Timing is always a tricky issue. No one can time the market correctly consistently. One may get it right few times but would also lose out on equal number of times. So smart investing is buying stocks at their support levels and taking out money only when it is needed and and when stocks are at their important resistance levels.  A look at one year chart would give good indications for that.

Let us now see how the result season pans out. Till then pick up gems that have not yet moved up smartly.

rgds

Vibhas