Prajna Capital - An Investment Guide

It is not easy to predict the market direction. But in order to maximise returns, it is important to buy the right stock at the right price and sell it at the right time. Investors always ask the question - is this time to sell or should I hold it for some more time? These are a subset of symptoms that can indicate a possible correction in the near term. Investors can start taking profits (or part profits) when one or more of these symptoms show up in the market. Stretched valuation Market valuation is the sum of individual stocks valuation. Valuation of stock is derived from its expected future performance. In a bull market, stocks have a tendency to surpass the true valuation. When a lot of stocks go way beyond their true valuation, the market looks over-valued and signals a correction. Global events Global events have direct or indirect impact on stock markets. Things like rising of crude oil prices, metal prices, and fall in the global markets can trigger a fall in the loca...